Domino’s Pizza (NYSE: DPZ) is an American multinational pizza restaurant chain. Last month, it reported a strong fourth-quarter revenue and earnings per share and also it surprised investors by posting accelerating sales growth at the close of fiscal 2019. Domino’s also said it’s increasing its quarterly dividend by 20%, to $0.78 per share.
If we take a look at the daily chart for the stock before Earnings report, we can notice based on the , that DPZ was trading within a corrective structure since August 2018. The move lower unfolded as a which reached it’s target area at equal legs $227 – $209 before finding buyers then reacting higher with an impulsive rally.
We believe the market is ruled by technical aspect and the news is an after-fact event to drive the market into the pre-determined direction which was in this case higher as it managed to create a higher high sequence from August 2019 low just before the release of it’s Earnings report.
DPZ Daily Chart Before Earnings Report
As a result, the stock soared last month +30% breaking out of the 2 years sideways range and taking 2018 peak. The move higher opened new weekly bullish sequence for DPZ as the previous is suggesting a similar cycle should follow with a minimum target at 100% fib ext area $525. Consequently, the stock will be looking to remain supported above 2019 low $220 and investors can be looking for corrective pullbacks in 3 , 7 or 11 swings to join the new bullish cycle.
DPZ Weekly Chart
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