Restaurant Brands International (QSR) owns four prominent quick service restaurant brands: Burger King, Popeyes Louisiana Kitchen, Tim Hortons and Firehouse Subs. The QSR stock price has soared higher from a low in October and made a major upside breakout, so let’s look at the charts.
In the daily bar chart of QSR, below, we can see that the shares have broken out over the highs of 2022. Prices have roared higher from a higher low in October. The shares are trading above the rising 50-day moving average line and above the rising 200-day moving average line. The trading volume has been rising since early September and is a sign that traders and investors are voting with their feet.
The On-Balance-Volume (OBV) line has been strong since May and tells me that buyers of QSR are being more aggressive than sellers of QSR. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of QSR, below, we can see the bottom pattern that shares have broken out of. There is a neckline across the $62 area. A big white candle (bullish) brings out the breakout along with expanding trading volume. The slope of the 40-week moving average line has turned positive.
The weekly OBV line shows strength from June and the MACD oscillator recently turned bullish.
In this daily Point and Figure chart of QSR, below, we can see a price target in the $76 area.
In this weekly Point and Figure chart of QSR, below, we can see a price target in the $95 area.
Bottom-line strategy: Traders could look to go long QSR on a pullback to the $64 area risking below the breakout level of $62 (maybe below $60). On the upside our first price target is the $76 area.
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