Jay Woods looked at McDonald's stock chart and decided the lines were "coiling." Not moving. Not consolidating. Coiling. Like a snake that sells Big Macs.
The stock had low volatility on earnings day. This apparently counts as bullish. A company reports quarterly results and the market yawns, so naturally you should buy it. That's the analysis. The chart didn't do anything interesting, therefore it's interesting.
Woods says there's "a good support area." He means the price stopped going down at a certain number. Twice. That's the entire thesis. Two times the stock didn't crash through a level, and now retail traders are supposed to mortgage their homes to buy calls on a fast food chain that's been publicly traded since 1965.
The fundamental story is changing in much of the sector, Woods adds. He doesn't say how. He doesn't say which parts. Just that something fundamental is different now. Maybe people are eating more. Maybe less. The direction doesn't matter when you're trading coils.
McDonald's may be worth a quick stop, he says. A quick stop. At McDonald's. The pun was right there and Woods stepped over it to tell you about support levels and coiling charts instead.
The stock ticker is MCD. The chart shows a series of candlesticks that look exactly like every other chart if you squint hard enough and pretend patterns from 1983 still work. Woods squinted. He saw a coil. He told CNBC. Now someone in Kansas is using their grocery money to buy shares at $287 because a man on television said the squiggles looked like a spring.
The hamburger line goes up when Woods says it coils, or it doesn't, and either way he'll be back next month with a new shape he found in a different chart.
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