Earnings Play: Domino's Pizza
Jason Lubin October 7, 2020 4:10 PM
Look for a bounce off of support before the uptrend continues.
On Thursday, before market, Domino's Pizza (DPZ) is expected to release third quarter EPS of $2.78 compared to $2.05 last year on revenue of approximately $953.0 million vs. $820.8 million a year ago. The company is the world leader in pizza delivery and on October 7th, Domino's announced that it will hire 2,000 new employees across Canada.
Technically speaking, on a daily chart, Domino's stock price is currently sitting just below the all-time high of roughly 436.00 and has been in a strong long-term uptrend since 2009. The RSI is holding around 64 after pulling back from overbought territory. Given the short-term uptrend that price has been in since September 8th and the falling RSI, price will likely lose some momentum and fall back to its 401.00 support level. At 401.00 traders should look for a bounce to retest the record high of about 436.00. If price can breakout above the 436.00 high, then it would clear a path for price to reach for its first Fibonacci target at 479.00. If price can get above 479.00, it could then reach for the large round number of approximately 500.00 near the second Fibonacci target. On the other hand, if price does not hold above 401.00, then speculators should look to 376.00 for a rebound. If price cannot hold above 376.00, then Domino's could fall a bit further before finding support.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.