Analysis of MCdonalds (MCD)

 EXHAUSTION GAP

Exhaustion gap is a sign of fatigue (exhaustion) that often occurs after a long rally or near the climax of an uptrend. The movement lacks the gap should be a thin volume to support the effect of this gap, which indicates an interest to buy (demand) is less and less on the stock, or reflect market saturation. If the gap in the gap is often said to be "temporary gap" is closed by falling prices in a few days later, then this could be a sign reversal (Bearish signal). Example stock McDonalds Corp (MCD) exhaustion gap seen in the image above.  

On 16 November 2009 with shares of McDonalds MCD stock code price hikes occur, whereas previously the price closed at $ 63.58. It turned out the next day at the market opening price opened at $ 63.92, the highest price at $ 64.75, the lowest price at $ 63.71 and the closing price of $ 64.53 to form a gap, where the price in just 13 days back down toward the support at $ 60.78. MCD's stock price continued to weaken through the support and on the trade date of December 8, 2009 closing price of $ 60.6, while new support has not been established so that the prices are still vulnerable and tends to weaken, meaning to buy this stock has not seen signal and for his fellow traders who wants to buy the stock or call options is not advised to buy, Until recently formed support.