Keep an eye on overbought shares of McDonald’s (SYM: MCD).
Not only is it technically stretched on RSI, MACD and Williams’ %R, but it’s also slipping on news an E. coli outbreak has been linked to its quarter pounders. All of which could send the stock significantly lower immediate term.
“This is a fast-moving outbreak investigation,” the CDC wrote on its website, as quoted by Yahoo Finance. “Most sick people are reporting eating Quarter Pounder hamburgers from McDonald’s and investigators are working quickly to confirm which food ingredient is contaminated.”
In addition, as noted by analysts at BTIG, “While the incident appears to be more contained than others we have seen in the industry, an expansion of the investigation or sustained publicity is what has the potential to weigh on consumer traffic.”
Immediate term, until things are figured out, we do expect to see further downside in MCD.
