Restaurant Brands International (QSR) made a large key reversal to the downside in late October. There was some minor follow-through selling and prices have closed below the rising 50-day moving average line. Is there more weakness to come or will prices level off? Let's drill down into the charts and indicators and check the Yelp reviews.
In this daily bar chart of QSR, below, we can that prices have been in an uptrend the past twelve months. Volume and the On-Balance-Volume (OBV) line rose the past twelve months but the line has turned a little lower in recent weeks suggesting that sellers have now become more aggressive. We already noted the movement around the 50-day moving average line and if the slope of the line weakens we will have another warning signal. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been in a bearish mode since late October and could soon cross below the zero for an outright sell signal.
In this weekly chart of QSR, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is bullish and confirms the price advance we have seen since early 2016. The weekly MACD oscillator is in a bearish mode and pointed down suggesting that the strength of the trend has weakened.
In this Point and Figure chart of QSR, below, we can see the uptrend and that a decline to $63.50 will weaken the trend slightly.
Bottom line -- QSR is not showing a distribution top formation. It has not seen months of erosion, however, prices are likely to see a sideways period of trading bounded by $60 on the downside and $70 on the upside.