• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Domino's Pizza Tested a Key Average for a Buy Signal

Our latest trading strategy on the food delivery giant.
By BRUCE KAMICH
Mar 20, 2020 | 12:17 PM EDT
Stocks quotes in this article: DPZ

During Thursday's installment of Mad Money host Jim Cramer told viewers he would also buy food delivery giant Domino's Pizza Inc. (DPZ) , which soared 11% Thursday.

Let's go online and order up some charts of DPZ. 

In the daily bar chart of DPZ, below, we can see some recent big price swings. DPZ gapped sharply to the upside in February and then slowly filled the gap and more over the next few weeks. DPZ briefly touched the rising 200-day moving average and then rallied again to even cross above the 50-day moving average line.

The movement of the On-Balance-Volume (OBV) line has been positive. The OBV line has been in an uptrend the past year and over the past two months it hardly dipped suggesting that the pullback from the gap up was not heavily sold by investors. The longs stayed with their positions.

The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal but it looks like it will not generate an outright sell signal by crossing below the zero line.  

 
In the weekly bar chart of DPZ, below, we can see that the recent upside strength was a breakout from a large $300-$225 consolidation pattern. The pullback to the rising 40-week moving average line was similar to the quick retest of the 200-day line on the daily chart above.
 
The weekly OBV line shows some downward movement but it looks like it has started to firm again. The MACD oscillator on this longer time frame has begun to narrow but still remains bullish.  
 
 
In this weekly Point and Figure chart of DPZ, below, we can see a big up and down swing in prices but the chart shows the potential of the large consolidation pattern with a longer-term price target around $600.  
 
 
Bottom-line strategy: I have not (yet) ordered from Domino's but that day could be coming soon. The current chart picture of DPZ is positive but traders may need to risk below $300 in this current volatile environment.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Food & Drink | Restaurants | Mad Money

More from Stocks

Bulls Might Be Smiling, but They Should Also Be Guarded

James "Rev Shark" DePorre
Jun 9, 2023 4:17 PM EDT

This week was good for the bulls, but we have no promises the action will continue, and narrow market still haven't left us.

LD Micro Offers Lots of Big Opportunities

Jim Collins
Jun 9, 2023 1:40 PM EDT

Fresh off my trip to Los Angeles, I'm psyched about what's happening in the microcap names.

3 High-Yield Dividend Aristocrats Yielding Over 5%

Bob Ciura
Jun 9, 2023 1:05 PM EDT

These 'outliers' are suitable for income investors that value reliability, but also want to benefit from high income yields at the same time.

Tesla Paves Path to Become 'OPEC' of Electric Vehicle Era

Stephen Guilfoyle
Jun 9, 2023 11:44 AM EDT

Let's look at the automaker's sudden shift forward and a roadmap for investors.

The Potential for a Market Correction Is Increasing

Guy Ortmann
Jun 9, 2023 10:00 AM EDT

Here's why we think a more defensive approach is appropriate now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:45 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Bulls, Bears, and Market Predictions
  • 11:31 AM EDT CHRIS VERSACE

    We're Adding to a Position on Weakness

    Check out what's going on in the Action Alerts PLU...
  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login