McDonald’s reported earnings before the bell this morning. According to Barron’s “The company surprised investors by reporting slower-than-expected earnings per share growth and shrinking profit margins. U.S. same-store missed expectations. And CEO Don Thomson warned that results for the rest of 2013 are likely to remain a challenge.”
From a purely technical standpoint, the uptrend does appear to be on the exhausted side. We are seeing a pattern of lower highs as depicted by the trend line on the above charts. I’m willing to give the uptrend the benefit of the doubt above $96.50-$97. If we can hold that level a move back into Friday’s range is on the table.
Failure at support and I would say a move back down into $93’s and possibly as much as $88 seems like a realistic possibility.