On March 30, Domino’s Pizza (DPZ) provided a business update in advance of their Q1 earnings release on 4/23/20.
U.S. same store sales rose 1% between 2/23/20 – 3/22/20.
International sales fell 0.2% during this period excluding the impact of foreign currency translation.
Domino’s Pizza CEO, Ritch Allison, noted that shelter in place, pantry loading, school cancellations and lack of televised sports have all impacted the company’s business.
Domino’s Pizza’s stock price (DPZ) fell in Tuesday’s trading session.
Given this background, let’s see what the stock chart tells us.
Domino’s Pizza (DPZ) Weekly Chart
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim Technical Briefing:
The weekly cycle analysis suggests that DPZ is likely in the late stages of a rising phase and due to form an intermediate-term high. Weekly momentum is positive.
On the upside, there is an intermediate-term Fibonacci resistance zone from 328.54 – 341.12. On the downside, there is a Fibonacci support zone from 294.00 – 270.08. Our analysis suggests that for the bulls to regain control of the intermediate-term, we would likely need to see a weekly close above 359.04.
askSlim Sum of the Evidence:
DPZ is in the late stages of a rising phase with positive weekly momentum. Given these relatively strong conditions, we would expect the stock to fail in the upper short-term resistance zone beginning at 328.54. There is a likelihood the stock tests the intermediate-term support zone beginning at 294.00 by June.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.