Looking for signs of spring? Take your pick.
--Pitchers and catchers reporting for training.
--The groundhog not seeing its shadow.
--Getting a seed catalog in the mail.
--Domino's Pizza (DPZ) gapping to the upside.
DPZ was stuck in a nine- to ten-month sideways consolidation (chart above). This sideways price action is not exciting until the On-Balance-Volume (OBV) line starts turning up in the past two months. Add in the rising 50- and 200-day moving averages and a Moving Average Convergence Divergence (MACD) oscillator above the zero line, and you get a bullish set up coming into today's upside gap.
It is not hard to see the long and strong uptrend on DPZ in this chart, above. Prices are above the rising 40-week moving average. The OBV line on this longer time frame is neutral during the sideways period in 2015 and the MACD oscillator has a bullish configuration above the zero line. The only thing missing is that the gap disappears on this time frame.
In this last chart (above) we switched over to a Point and Figure (P&F). This kind of chart looks at price reversals, and sideways action on the chart translates into upside (or downside) price targets. This chart yields an upside target of $133 for DPZ.