DMP.AX pushes through previous session high
Domino PIZZA Enterpr (DMP.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DMP.AX finished the week 4.2% higher at 52.61 after gaining $0.88 (1.7%) today, strongly outperforming the market (ASX 200, 0.2%). Today's close at 52.61 marks the highest recorded closing price since September 28th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 52.14, the share confirms its breakout through the prior session's high having traded $0.47 above it intraday. The last time this happened on October 10th, DMP.AX lost -1.17% on the following trading day. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DMP.AX as at Oct 12, 2018):
Friday's trading range was $2.11 (4.18%), that's far above last trading month's daily average range of $1.38. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being below average.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Marubozu and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
Breaking through the key resistance level at 51.85 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 53.33. The market found buyers again today around 50.50 for the third trading day in a row after having found demand at 50.51 in the previous session and at 50.26 two days ago.
While the stock is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
As prices are trading close to October's high at 53.08, upside momentum might accelerate should Domino PIZZA mark new highs for the month.
Among the 13 market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Close to S1 Support" stands out. It's common interpretation of being bullish has so far been confirmed for Domino PIZZA in the past. Out of 1,047 times during the last ten years, DMP.AX closed higher 50.62% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.36% with an average market move of 1.43%.