In his Real Money column "Operating "At Scale' Puts 3 Restaurant Names Far Above the Crowd" discusses how Domino's Pizza (DPZ) has come through the pandemic stronger than before.
CEO Ritch Allison told Cramer how Domino's was able to flourish during the pandemic thanks to its focus on digital sales. The company already enjoyed 70% digital orders in the U.S. before the pandemic and that number has risen to 75% now.
In our last review of the DPZ charts back on April 30 we concluded that "Traders could rebuy DPZ on a dip to $410 risking to $389. The $490 area is our first price target."
In the updated daily bar chart of DPZ, below, we can see that the shares continued higher from late April and just reached our $490 price target with Thursday's large range day. Prices are trading above the rising 50-day moving average line as well as the rising 200-day line.
The On-Balance-Volume (OBV) line has been going higher since early March to confirm and support the price gains. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside again for a fresh buy signal.
In the weekly Japanese candlestick chart of DPZ, below, we see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line.
The weekly OBV line is strong and tells us that buyers of DPZ have been more aggressive. The MACD oscillator is in a clear bullish alignment above the zero line.
In this daily Point and Figure chart of DPZ, below, we can see that the software is projecting the $635 area as the next upside target.
In this weekly Point and Figure chart of DPZ, below, we see a potential $705 price objective.
Bottom-line strategy: 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.
