Mc Donald’s is definitely losing momentum at all time highs. RSI and MACD both languishing. Stock trading at a big premium to the 50 day moving average which has led to pullbacks to the average in the past.
Valuations getting stretched. P/E briefly breached 28 before dropping today. Last time P/E was at such a lofty multiple proved to be a significant intermediate term top in the stock (see chart above)
MCD had a key reversal day today. Shares traded up to fresh all time highs before reversing course to close lower and near the lows of the day. This type of price action is many times emblematic of a top in the stock, especially after such a long rally. The buyers may finally be exhausted.
Implied volatility comparatively cheap. This is yet another sign of complacency and favors long volatility trade structures when constructing positions.
I expect a move back towards the 50 day moving average near $200 over the coming weeks.