During Tuesday's Mad Money program, Jim Cramer pointed out to viewers that a pandemic winner like Domino's Pizza (DPZ) was getting investors attention again. Let's check on the charts.
We looked at the charts of DPZ on July 23 and wrote that "If you are still long DPZ -- great. Raise stop protection to $495. DPZ could see a shallow pullback in the next few days if you are looking to buy more. The $635 area is our next price objective."
In this updated daily bar chart of DPZ, below, we can see that prices made a shallow pullback to allow buyers to increase their long position and DPZ has stayed above our recommended stop loss of $495. Prices are above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has been strong since early March and tells us that buyers of DPZ have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but pointed down in a take profit sell mode.
In this weekly Japanese candlestick chart of DPZ, below, we see a bullish picture. Prices are in a steep uptrend above the rising 40-week moving average line. The weekly OBV line is bullish as is the MACD oscillator.
In this daily Point and Figure chart of DPZ, below, we can see a potential downside price target in the $482 area. We may see new highs for DPZ sooner than later so traders should stay long and keep that $495 stop.
In this weekly Point and Figure chart of DPZ, below, we used close only price data. Here the software points to a $926 price target.
Bottom line strategy: We are not seeing much downside "give" to the price of DPZ so the Point and Figure target of $482 may not happen. Keep that stop at $495 and stay long.
