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DPZ
$DPZ Dominos - Further Downside Expected$DPZ Dominos Pizza broke down through a 9 month long bullish uptrend support line last week on strong volume. I'm expecting further downside through the end of summer into fall. At it's recent apex in late June just below $300, it was precariously over-extended 30% above the 200d ema on the daily chart with an over-bought RSI of 85. Expect a fairly slow descent over the coming months with this being a relatively lower volume stock (sub-1M avg daily volume).
Medium term target - $220 by next ER in October
Note: Observation/opinion, not investment advice.
$DPZ Dominos Overstuffed Crust - Short$DPZ Dominos has been testing the upper limits of the current ascending channel for a few days now. It's finally looking over-extended, overbought, and primed for reversal.
Notice the final push for another new ATH today with a bearish divergence in volume, RSI, and MFI. Definite rising wedge pattern into the upper channel limit (shooting star doji on the daily chart). Once the price breaks through the lower wedge line, I'm expecting a correction to at least the area of the 50d ema or ~$264. If the 50d doesn't hold as support I'm expecting sub-$260 by July.
On a fundamental note: Dominos just lost their CFO yesterday...never a good sign.
This analysis is an opinion and does not constitute investment advice.
A good entry point for a DPZ ShortDPZ Short Trading Week Dec 3-8
Technicals:
- RSI Showing overbought at 66-72 range
- MACD Showing strong sell signal
- More sellers than buyers in recent months (volume)
- Clear head and shoulders between blue lines, indicating down-trend reversal
- Clean upper-trend line touch @ 184.72 and potential 2-week long head and shoulders pattern indicating reversal in ST up trend
- 50, 100, 200 Moving averages converging below stock price, showing that the stock may be overvalued and the trading range is tightening, poising it for a
potential breakout.
Domino's Pizza (DPZ) Buying Opportunity-On April 28, 2016 Company had disappointing earnings.
Estimate: 0.97
Earnings: 0.89
Total Decrease -0.08 (-8.25%)
-Stock recovered nicely with the RSI indicator following the stocks trend
-April 27, 2017 is the next earnings report for DPZ
Estimate: 1.16
Earnings: ???
The stock is starting to sell off with rumours of lower than projected earnings. I'm projecting the stock to continue to sell off to continue to around the $164-$160 level.
-Great opportunity to buy at a discounted price after earnings are reported.
Buy Dominos Pizza :)Lately I've been having fun practicing on literally any chart I come across so I decided to do some analysis on DPZ.
Price is in an accumulation phase in accordance with the Dow Theory. If price continues to behave like this, then a move up is very likely. So I suggest buying some pizza :)
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