Shares in McDonald’s (MCD) slumped 6% in extended trading on Tuesday after health authorities said they were investigating an 澳洲幸运5官方开奖结果体彩网:E. coli outbreakﷺ possibly linked to the fast-foodꦐ chain’s Quarter Pounder burgers.

The Centers for Disease Control and Prevention (CDC) said that 49 cases of E. coli infection had been reported across 10 states, prompting McDonald’s to temporarily remove the popular burger and suspend the distribution of slivered onions from restaurants in those jurisdictions.

Quarter Pounder hamburgers are a staple on the restaurant’s menu, generating billions in revenue each year. Prior to Tuesday’s post-market drop, McDonald’s stock had gained around 24% over the past three months, boosted by confidence that the company’s澳洲幸运5官方开奖结果体彩网: $5 value meal launched in June could translate into sales🔯 growth.

Below, we analyze the 澳洲幸运5官方开奖结果体彩网:technicals on the♊ McDonald’s chart and identify important p🍌rice levels to watch out for.

Prior Trading Range in Focus

McDonald’s shares oscillated within an orderly 16-month 澳洲幸运5官方开奖结果体彩网:trading range before breaking out above th𒊎e pattern latꦚe last month.

In an encouraging sign for the bulls, increasing volume has backed the stock’s recent move higher. Moreover, the 50-day moving average (MA) crossed above the 200-day MA in September to form a 澳洲幸运5官方开奖结果体彩网:golden cross,♈ a bullish chart signal po🍃inting to higher prices.

However, given the projected news-driven drop, the stock may retest the prior trading range before potentially continuing its longer-term uptrend. Let’s look at three important 澳洲幸运5官方开奖结果体彩网:retracement levels on the McDonald’s chart and forecast a bullish 澳洲幸运5官方开奖结果体彩网:price target.

Key Retracement Levels to Watch

The first lower level to monitor sits around $300, just above where the stock finished the after-hours trading session Tuesday. This location on the chart finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from the 50-day MA and the trading range’s top trendline, which may flip from an area of prior 澳洲幸运5官方开奖结果体彩网:resistance into a floor of future support.

Bulls' failure to defend this level could see a fall to the $280 region, where the shares may attract buying interest near a trendline linking multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs on the chart between November 2022 and April this year. This location also sits in close proximity to the upward sloping 20🔯0-day MA.

A steeper drop could lead to the stock revisiting lower support at $260, an area where investors may seek out buying opportunities near a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting a range a🌠 comparab𒈔le trading levels on the chart from late 2022 to July this year.

Bullish Price Target to Monitor

To forecast a potential price target on the McDonald’s chart, we can use the 澳洲幸运5官方开奖结果体彩网:measuring principle.

To do this, we calculate the distance between the trading range’s two trendlines in points and add that amoܫunt to the breakout area. For instance, we add $53 to $300, which🦋 projects a bullish target of $353, an area where investors may look to bank profits.

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As of the date this article was written, the author does not own any of the above securities.