Restaurant Brands International (QSR) has climbed about 50% in the past 12 months. Not a bad performance, but some of our indicators show signs of a slowdown, so longs should consider raising their sell-stop protection or even trimming their positions. Simple advice, but let's check the charts below to see if you agree.
In this daily bar chart of QSR, below, we can see prices are testing the rising 50-day moving average line. A break of the 50-day average line may not generate a lot of selling, with the $62-$60 area representing a three-month area of support. A close below $60, however, is likely to weaken the chart and put the 200-day average line in striking distance. The On-Balance-Volume (OBV) line has turned down recently and suggests that sellers of QSR have turned more aggressive.
In the bottom panel, we can see a bearish divergence from September to October as prices made higher highs, but the momentum study made a lower high, telling us the rally in October was weaker than the September advance.
In this weekly bar chart of QSR, below, we can see prices are above the rising 40-week moving average line. Last week, prices made a new high for the move up and closed lower, signaling a possible weekly key reversal. The weekly OBV line made a peak and the Moving Average Convergence Divergence (MACD) oscillator is making a lower high than the high made in June.
In this Point and Figure chart of QSR, below, we can see an upside price target of $70.21, but a decline to $62.88 will start to weaken the chart.
Bottom line: Sometimes I am early in getting out of a stock. Sometimes I am too bearish. If my timing was better I would be relaxing with a mojito on the beach on one of the Saint islands (St. Barts, St. Kitts, St. Croix....). Meanwhile, I would recommend raising sell-stops on QSR to a close below $61.