Shark Found In the Filet-O-Fish

• Posted by Greg Harmon
• on February 25th, 2013

With all the talk of horse meat found throughout Europe, I find it interesting that no one is talking about the Shark that can be found in McDonald’s ($MCD) the maker of Filet-O-Fish. Oh I don’t mean that they use shark to make their signature fish sandwich. The Shark is in the chart of the stock price. Take a look.

McDonald’s, $MCD

The chart above shows two potential paths for the Harmonic Shark Pattern to play out. The first, with the ultimate goal of 98.23 or a 88.6% retracement of the move lower from the top made in January 2012 to the bottom in June last year. The second carries that higher to a 113% retracement at 101.80. Both are in the cards and with a strong positive performance for McDonald’s with the broad tape close to 2% lower it is worth a closer look. Other technicals are also positive with the Relative Strength Index (RSI) bullish and rising and the Moving Average Convergence Divergence indicator (MACD) curling higher on the signal line and about to cross to positive on the histogram. The Bollinger bands are opening higher as well. There is a Measured Move higher to 102.70 and a Three Drives (using the 127% extension shown in the first two legs) to 105.27.

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Dragonfly Capital Views Performance Through February 2013 Expiry

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