Domino's Pizza, Inc. (DPZ) is the 'Stock of the Day' at Real Money on Tuesday. We covered DPZ on Monday ahead of earnings, writing that "Our three charts are mixed. The weekly chart shows a large topping pattern but the Point and Figure chart suggests that a rally is possible. With no special knowledge of Tuesday's earnings numbers I would be prepared for a move lower. I am not saying that DPZ is a short, but I would not recommend a long position at this juncture."
In this daily Japanese candlestick chart, below, we can see a gap lower. Prices have recovered from the intraday low (so far) but it is only fractionally higher than the opening price. Right now the pattern could be a long-legged doji but it is hours until the close. A stronger test of the August lows is possible in the days ahead and the $240-$250 area is now likely to act as chart resistance.