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Trade of the Day: McDonald’s (MCD)

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Today, we are opening a new bullish trade on McDonald's (NYSE: MCD ) . MCD took quite a hit in early March when an analyst at RBC cut expectations for the company's same-store-sales numbers. However, this dip has since sparked a rally - especially because it looks like same-store-sales numbers are starting to pick up, according to a new report from Telsey Advisory Group.

MCD has been remodeling many of its locations in the United States and has seen a notable uptick in business at these updated locations. The company plans to continue remodeling outdated locations in 2018, with $2.4 billion in cap-ex spending, which should help boost sales even further.

MCD broke above down-trending support last Thursday, completing an inverted "head-and-shoulders" bullish reversal pattern, and we expect the stock to continue climbing up toward $170 in the run up to the company's earnings announcement on April 30, before market open.

'Buy to open' the MCD May 170 Call (MCD180518C00170000) for a maximum price of $2.45.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader , a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here .

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The post Trade of the Day: McDonald's (MCD) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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