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McDonald’s Price Analysis: E. Coli Outbreak Hits MCD Stock

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Lilly Mwogah Fact check, Reviewer
    Summary:
  • McDonald's (MCD) stock falls 5.2% after an E. coli outbreak linked to Quarter-Pounders. Explore key levels and potential recovery ahead.

McDonald’s (NYSE: MCD) shares have taken a 5.2% nosedive after reports linked its popular Quarter-Pounder burgers to an E. coli outbreak. The incident has led to several illnesses and, unfortunately, one confirmed death, shaking both investor confidence and the fast-food giant’s reputation.

Outbreak Puts Pressure on MCD Stock

The timing of the E. coli scare was very unfortunate for McDonald’s, as the company was preparing for a successful end to the year. Having received reports in several states, the fast food chain is now dealing with inquiries regarding the safety and quality control of its burgers.

Chart Analysis: Key Levels to Watch

  • Current Price: $298.57, down 5.12% today.
  • Resistance: The first resistance is at $300.57, followed by a stronger barrier at $317.77.
  • Support: Key support levels to watch are at $290.71 and $277.07. If prices fall below these levels, further selling pressure may emerge.
  • RSI: Currently at 42.14, indicating that McDonald’s is approaching oversold territory but still has room for potential downward movement if selling pressure continues.

Outlook

McDonald’s is in full damage control mode, trying to flip the script from crisis to comeback. While short-term turbulence is expected, long-term investors might just be eyeing this dip like a “value meal” opportunity. After all, McDonald’s has weathered storms before—let’s see if they can turn this sour news into a sweet recovery.

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