DPZ finds buyers at key support level


Domino's Pizza Inc (DPZ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

DPZ closes above its opening price after recovering from early selling pressure
DPZ finds buyers at key support level
DPZ runs into sellers again around 387.12
DPZ pushes through Thursday's high

Overview

DPZ ended the month 4.65% higher at 386.61 after gaining $2.08 (0.54%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $6.97 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 386.04, Domino's Pizza confirmed its breakout through the previous session high after trading up to $1.08 above it intraday.

Daily Candlestick Chart (DPZ as at Jul 31, 2020):

Daily technical analysis candlestick chart for Domino's Pizza Inc (DPZ) as at Jul 31, 2020

Friday's trading range has been $9.17 (2.38%), that's slightly below the last trading month's daily average range of $11.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DPZ.

In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line.

After trading down to 377.95 earlier during the day, the stock bounced off the key technical support level at 378.74 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 388.73 (R1). After having been unable to move above 386.04 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 387.12. The last time this happened on July 22nd, DPZ lost -2.00% on the following trading day.

Though DPZ is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Buying might speed up should prices move above the close-by swing high at 394.89 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 376.58 where further sell stops could get triggered.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Domino's Pizza. Out of 416 times, DPZ closed higher 60.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.50% with an average market move of 1.75%.


Market Conditions for DPZ as at Jul 31, 2020

Loading Market Conditions for DPZ (Domino's Pizza Inc)...
Latest Report:

DPZ closes within previous day's range

Aug 14, 2020
Trending Assets

Upgrade your trading!

Get the stats behind the charts

Find out what happened when Domino's Pizza Inc traded like this in the past. See the odds for each technical pattern with expected gain and loss.

Find out more
Top Movers
You have free reports remaining. Subscribe for unlimited access...SUBSCRIBELOGINGO!