Restaurant Brands International - (QSR.TO) - May 21, 2024 (Daily Stock Report)

by SIACharts.com

SIA Charts’ relative strength rankings help investors manage risk by identifying stocks and sectors which are underperforming or starting to underperform on their own or alongside their sector indicating that capital is moving elsewhere.

In recent weeks, Leisure stocks in general, and some Restaurants in particular have started to struggle relative to other sectors, a sign that high inflation and interest rates may be impacting consumer spending. Restaurant Brands International (QSR.TO) dropped out of the green zone of the SIA S&P/TSX 60 Index Report in February then spent six weeks sliding down through the yellow zone.

The shares have been in the Red Unfavored Zone since the beginning of April and are currently in 40th place. Since entering the Red Unfavored Zone, the shares are down 4.5%, while the S&P/TSX Composite Index has climbed 1.9% over the same period.

Candlestick Chart Completes a Bearish Descending Triangle.

Recent trading suggests that an uptrend in Restaurant Brands International (QSR.TO) peaked back in February and since then, the shares have come under increasing distribution. Over the last two months, a downtrend of lower highs has emerged, and the shares have not only broken their 10-week moving average near $101.00 and the $100.00 round number, both of them have been retested as new lower resistance.

Most recently, QSR.TO has broken down below $98.00, which completed a bearish Descending Triangle pattern and confirmed the start of a new downtrend. A measured move suggests next potential downside support may appear near $86.00, followed by $83.00 based on previous lows.

Point and Figure Chart Turns Downward.

This 1% chart highlights how a big uptrend in Restaurant Brands International (QSR.TO) shares peaked back in March near $110.00. Since then the shares have been trending back downward staging two bearish Double Bottom breakdowns in a row, signaling the start of a new downtrend.

Next potential support appear near $94.00 at a prior low, then the $87.65 to $84.25 area where previous highs and lows, along with vertical and horizontal counts cluster. Initial resistance on a bounce appears between the $100.00 round number and $100.75 based on a 3-box reversal.

With its bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 4 out of 10, QSR.TO is exhibiting short-term strength weakness against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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