QSR slumps, losing $1.87 (-3.21%) within a single day
Restaurant Brands International Inc. (QSR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
QSR finished Wednesday at 56.34 tanking $1.87 (-3.21%), notably underperforming the S&P 500 (-0.46%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on August 6th, QSR lost -2.66% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 56.65, the stock confirmed its breakout through the previous session low after trading up to $0.35 below it intraday.
Daily Candlestick Chart (QSR as at Sep 16, 2020):
Wednesday's trading range has been $2.20 (3.76%), that's far above the last trading month's daily average range of $1.50. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QSR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 55.60 (S1). Prices broke below the key technical support level at 56.84 (now R1), which is likely to act as resistance going forward. After having been unable to move above 58.32 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 58.50.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 55.35.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test August's close-by high at 58.68.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for Restaurant Brands. Out of 63 times, QSR closed lower 60.32% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.38% with an average market move of -0.12%.