McDonald's Stock Slips Below 200-Day Line — Can 'The Big Arch' Reverse The Slide?

McDonald's Corp MCD just launched a new burger in the UK called The Big Arch, but the only thing getting grilled this week is the stock.

Chart created using Benzinga Pro

McDonald's is now trading below its 200-day simple moving average (SMA) — a widely watched indicator — in what looks like a full technical breakdown. For the Golden Arches, that's not exactly a golden signal.

Shares of the fast-food giant have been sliding underperforming the S&P 500. Over the past month, MCD has lost 9%, and it's now down slightly for the year. The trend is unmistakably bearish: the stock is trading below its eight-day, 20-day, and 50-day exponential moving averages — a technical trifecta that often spells continued downside.

McDonald's Relative Strength Index (RSI), which measures whether a stock is overbought or oversold, has fallen to 25.75. That's well below the 30-level often considered oversold territory — but low RSI alone doesn't guarantee a bounce.

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Meanwhile, the Moving Average Convergence Divergence (MACD), which tracks momentum, is flashing a negative 4.84. This suggests the bears still have control and that further pressure may lie ahead.

That view is echoed in the options market, where traders appear to be positioning against a near-term rebound. Total options volume surged over 71% above the monthly average, with a heavy skew toward calls — but sentiment was actually negative. How? Most of the call activity reflected credit strategies, where traders bet that MCD won't rise beyond key levels, effectively collecting premiums from bullish speculators.

And yet, McDonald's is doing what it can to stir up appetite — literally. "The Big Arch" burger just dropped in the UK and Ireland, with plans to become a permanent fixture on the menu.

But for U.S. investors, the real question is whether the sizzle of new products can offset the chill in its chart. Until the stock reclaims key levels – especially the 200-day SMA — the setup remains firmly bearish.

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