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McDonald’s Corp.

Briefly popped up above $80.00, MCD immediately surrendered the gains the next day, falling back
towards $78.74 by the end of Wednesday. While this could be an ominous sign for the bulls, MCD still
hovers on the upper side of the trading range.

RSI is falling steeply after Wednesday’s session was opened with a big downside gap, pushing it towards
the middle area of 52.01. As a result, MACD also dropped sharply. The three EMAs remain positively
sloped however, and so far the 50-day EMA has been able to contain previous dip in August. This time
around, it is expected to do the same thing again.

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Statistics

6.00%

4.00%

2.00%

0.00%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
09 10 10 10 10 10 10 10 10 10 10 10 10
-2.00%

-4.00%

-6.00%

26.50%

26.00%

25.50%

25.00%

24.50%

24.00%

23.50%
YTD 12-Mos

MCD has been a consistent performer so far this year. From the beginning of 2010, it only booked three
months of losses and one of them is a tiny one (January). After two consecutive declines in May and
June, MCD has been on the green so far and its YTD gains have reached 26.11%.

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The strategy

SUPPORTS LAST RESISTANCES


12/8/2010

75.04 76.26 77.00 77.37 78.12 78.74 79.20 79.53 79.86 80.27 80.94

MCD hovers at $78.74 by the end of Wednesday’s trading session, and it looks vulnerable for another
push downwards. Support at $77.37 should be able to contain the dip once more before the stock
rebound higher back to attempt another surge towards the area above $80.00. Below $77.37 may
require caution because it could fall back to as low as $75.04. Still, overall trend remains healthy and
dips should be corrective in nature.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any
securities. This report has been prepared based on sources believed to be reliable, but there is no
assurance or guarantee regarding its completeness & and accuracy. The author accepts no responsibility
or liability arising from any use of the report.

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