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Restaurant Brands International Inc. (Friday’s close $79.93) declined from $105.93 in 2019 to $36.48 during the 2020 “flash crash” (A-B); throughout this time the stock remained below a falling trend line (dotted line) and below its falling 40-week Moving Average (40wMA). After a quick recovery to $81.50 (C), the stock settled in a horizontal trading range mostly between $70 and $81 for about a year (dashed lines). The rise above the top of this range signalled a breakout and the start of a new uptrend toward higher targets (D). The recent correction to the 40wMA provides a good entry level (E).

There is good support near $80-$81; only a sustained decline below $79 would be negative.

Point & Figure measurements provide targets of $94 and $104. Higher targets are visible.

stock

Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.

Chart source: www.decisionplus.com

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