After a long period of bullish appetite, the bears should dig in now. McDonald’s has thoroughly tapped the magenta-colored zone between $291.18 and $287.84 and also touched at the green zone between $294.18 and $290.10, completing wave in magenta as well as wave B in turquoise. Now, the share should drop out of the zone-compound in magenta and green and fall back below the mark at $282.43. Thus, the stock should gain enough downwards momentum to make it below the support at $259.51, where it should finish wave C in turquoise and wave (2) in magenta before turning upwards again. There is a 35% chance, though, for McDonald’s to continue climbing, leaving the green zone on the northern side. In that case, we would consider wave alt.(2) in magenta to be already finished.
