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March 12, 2023
- Restaurant Brands International is eyeing the $60.08 support level
- Falling prices have precipitated Restaurant Brands International's approach to its lower Bollinger Band® at $60.14
Over the last 14 days, Restaurant Brands International has fallen 10.66%. Friday's session continued down the same path: grinding lower but with no clear-cut direction, the US fast food multinational closed the session at $60.53 after forming a distinct $60.37 – $61.56 range.
The fast food restaurant company is now trading 10.89% below the significant high of $68.48 it set around 27 days ago.
Technical analysis shows that Restaurant Brands International Inc. could begin to recover as it approaches significant support, now 45 cents away from $60.08. Dipping below could be an indication that further losses are ahead. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the Relative Strength Index indicates Restaurant Brands International is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $60.14, a low enough level to, generally, suggest that Restaurant Brands International is trading below its fair value.
All in all, the technical analysis suggests Restaurant Brands International has no clear-cut direction.
Restaurant Brands International was not the only decliner in the consumer discretionary sector; Walt Disney went down 2.67%, closed at $96.14. Amazon closed at $90.73 (down 1.65%). Lowe's went down 1.2%, closed at $199.05.
