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February 22, 2023
- Restaurant Brands International could slow down as it approaches resistance at $68.09
- Known Fib level $67.5 serving as battleground for bulls and bears
Restaurant Brands International has posted further gains as part of a 4 day trend that has already seen the stock gain $1.43. Yesterday's session pointed in the same direction — generally flat but with a slight bullish bias, Restaurant Brands International ranged between $66.87 and $67.82 before closing higher at $67.75.
The stock has been trending positively for about a month. Approximately 9 days ago, the fast food restaurant company reached a significant high of $68.48 but has struggled to hold onto its gains and declined 1.4% since then.
Trend analysis indicates that Restaurant Brands International Inc. made an initial breakout above its 10 day Simple Moving Average at $67.37, a potential indicator of a newly emerging bullish phase. Restaurant Brands International formed a session range of $66.87 to $67.82 leaving buyers and sellers highly concentrated around an active Fibonacci resistance level of $67.5. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $68.53, thereby suggesting that Restaurant Brands International is becoming overvalued. Analysis of Restaurant Brands International's recent price action suggests Restaurant Brands International is 34 cents away from testing key resistance at $68.09. Peaking above this level could inspire market bulls and open the path to further gains.
Notwithstanding Restaurant Brands International's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Fundamental indicators – United States Existing Home Sales (Jan) came out at 4 million, while a consensus of analysts was expecting 4 million.
While Restaurant Brands International was bullish yesterday, the following consumer discretionary stocks underperformed: Home Depot lost 7.06% yesterday and closed at $295.5. Lowe's went down to $201.85, losing 5.12% after it closed at $212.75 yesterday. Alibaba closed at $95.1 (down 4.91%).
Upcoming fundamentals: United States Crude Oil Inventories projected to decline to 1.17 million while previous data was 16.28 million; data will be released tomorrow at 16:00 UTC.
