Restaurant Brands QSR-T (Wednesday’s close $87.54) declined from $105.93 in September, 2019, to $36.48 in March, 2020, and, after a quick recovery to $81.50 (C), the stock settled in a horizontal trading range mostly between $68 and $88 (dashed lines).
On Aug. 6, 2021 ($79.93) we suggested that Restaurant Brands appeared ready to resume the uptrend, however it continued to trade within the trading range. This more than doubled the range in size and now it supports even higher targets. The recent rise above the top of this range confirmed a breakout (D).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. A minor correction toward $81-$82 would provide a good entry level. Only a sustained decline below $78-$79 would be negative.
Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.
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Monica Rizk is the senior technical analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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