Domino’s Delivers Higher Highs and Lows

Yesterday, we looked at a Daily Price Chart with moving averages of Netflix, Inc., noting that the stock’s monthly price was trading above its 10-Month SMA.

Today’s Chart is for Domino’s Pizza Group LTD (NYSE: DPZ).

Domino’s Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain.

The Daily Price Chart below shows that DPZ has traded in a clear bullish pattern of higher highs and higher lows since mid-March.

Track the Price Chart from lower left to the upper right…

This bullish trading pattern, and our prolonged shelter-in-place rules, point to a further advance.

You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.

But it’s important to note that since strong stock rallies have pullbacks along the way, we like to use those as a buying opportunity.

Purchasing DPZ after a 3 to 5% price pullback has provided a good entry point for the stock during this run and has produced a healthy return.

We’ll keep watching DPZ as it tops its previous highs and waiting for price pullbacks.

Additionally, we’d like to talk about how a previous Chart of the Day stock has done…

On April 10^th, we highlighted Everbridge, Inc. (NYSE: EVBG), noting that EVBG’s OBV line was sloping up.

If you happened to have purchased EVBG shares on that day, you’d already be up 27.2%.

But… if you had purchased the right option contract, you would be up 190.3% in just ten days’ time!

That’s the power of options.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

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