DMP – Chart review of Domino Pizza Enterprises.

Domino Pizza “takes the cake”

In just on a four year period DMP has exceeded all expectations in rising from a share-price of $4.92 to a high of $42.

This post considers only technical considerations, and is for the information of readers only.  Technical analysis can not foretell the future, but it is technique for following market sentiment. The opinions are my own and are not to be relied on for investment decisions.

'Ten Bagger' hesitates.

‘Ten Bagger’ hesitates.

Change in Trend on daily chart.

Change in Trend on daily chart.

?Cross-over cross-roads.

?Cross-over cross-roads.

Observations

Since the meteoric rise of the share price in February on bullish profit reports, the momentum of the rise has stalled.

In the last four months the shares have traded sideways with support being found at increasing increments until May/ June when a down-trend on the daily chart has emerged from a high of  $42 the week of 8th May.

The reporting season starting next month is a time of share-price volatility. The fact that not always is a profitable result met with a lift in the share-price, makes it all the more difficult to pick which way the share-price will go.

The emergence of a down-trend on the daily chart, and the imminent cross-over of the multiple moving averages could be a warning to take profit, and hedge “long” positions.



Categories: Chart Analyses, Chart Review, Trading opinion

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