Domino's Pizza ( DPZ) was bumped up to a buy recommendation (outperform) by a sell-side firm Friday. Yes I know that the football season is underway and that pizza consumption is going to increase (In full disclosure I don't need a sporting event to order in pizza and my waistline shows it.). 
Let's check out the charts of DPZ as "hot out of the oven" may not apply to the trends.
In this daily bar chart of DPZ, below, we can see that prices peaked in late December/early January. Prices sank to a low in May and then rebounded into July followed by a second peak in August. DPZ declined steadily and is retesting/breaking the May nadir.
The math-driven On-Balance-Volume (OBV) line has made a new low for the move down and shows us a one-year decline. Sellers of DPZ have been more aggressive sellers than buyers for the past 12 months. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of DPZ, below, we can see that a weekly close below $325 will be a major chart breakdown. A three-year major top pattern! The slope of the 40-week moving average line is negative. The weekly OBV line is pointed lower. The MACD oscillator has just crossed lower for a fresh sell signal.
In this daily Point and Figure chart of DPZ, below, we can see that prices have reached and exceeded a downside price target of $333.
In this second Point and Figure chart of DPZ, below, we used weekly price data with a five box reversal filter. Here the software is projecting a downside price target in the $107 area.
Bottom line strategy: Football remains popular and pizza will be served, but it may be coming from the freezer section of your local supermarket and not from DPZ. Despite the fundamental recommendation, I would avoid the long side of DPZ.
