Chart of the Day - Wednesday, October 23, 2024

Patrick Dunuwila
October 23, 2024

Chart of the Day

🏆 Today's Chart of the Day was shared by Alfonso De Pablos (@AlfCharts).
 

  • McDonald's ($MCD) had its worst session since March 2020 today on news of an E. coli outbreak at one of their locations. The stock opened lower by -7% but rallied intraday, closing -5.2%. 
     
  • We've seen this movie before, and it did NOT end well. Chipotle ($CMG) fell -67% over a two-year period after an E. coli outbreak in 2015. Betting on a similar outcome would be a great example of recency bias. 
     
  • Despite today's headline, $MCD is merely retesting former resistance for the first time since breaking out last month. $300 was the ceiling for two years, but it could act as the floor now that we're testing it from above.
     

Takeaway: McDonald's ($MCD) gapped lower today on news of an E. coli outbreak, but the stock refused to close below support.

Filed Under: