More aggressive buying and maybe some yeast have helped Domino's Pizza Group (DPZ) recuperate from its July/August decline. Prices have rallied over the past five weeks to close above the declining 50-day moving average line as well as the rising 200-day moving average line. Our technical indicators are mixed right now so it may be a toss-up as to whether DPZ can rally to new highs in the weeks ahead. Let's check the latest indicator and charts.
In this daily bar chart of DPZ, below, we can see that the 50-day moving average line could close below the rising 200-day moving average line for a bearish dead cross. On the plus side the On-Balance-Volume (OBV) line has moved up to a new high signaling more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line last month for an outright go long signal.
In this weekly bar chart of DPZ, below, we can see that prices are back above the rising 40-week moving average line. The weekly OBV line is telling us that buyers have been more aggressive on accumulating more shares of DPZ and the weekly MACD oscillator is getting closer to a fresh buy signal.
In this Point and Figure chart of DPZ, below, we can see the selloff from July and the subsequent recovery. We don't have a bullish breakout until $222.48 but a $245 price target is already projected.
Bottom line -- prices could trade sideways between $190 and $210 for a few weeks but a retest of the June/July highs seems in the cards. Traders should either buy a dip towards $190 risking below $180 or buy strength above $215 and $222.