January 13 Chart of the Day - Papa Johns
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Papa John’s International, Inc. (PZZA) reported today preliminary sales and unit development information for the fourth quarter and full year ended December 29, 2024.
The company doesn't report earnings until February 27, 2025. Some things just make you wonder and go hmmmm...
So we wanted to review their chart from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $140.68 all time high (ATH) back during the height of the pandemic price fell dramatically and for all intents and purposes is in search of a bottom.
Price potentially may want to visit a previous major support/resistance level in the $37.32 area.
This type of price action can be really tough on the buy and hold investors but at the same time can be a traders haven!
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the relentless selling pressure.
Trading around $38 earlier today price may take a breather in this price area before deciding to either move back to the upside or continue with the selling pressure. While this is not the last chance for the bulls to step in they seemingly are running out of room from a technical standpoint.
We can see a potential demand zone sitting roughly between $28.50 and $37.32.
A demand zone is one of the five price action tools we teach. It's a price area on a chart where previously there was a high demand for the underlying asset based on historical price action in and around the same area where buyers could be prepared to purchase at different levels within the zone. A demand zone is present within the light gray rectangle and has a high buying potential.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
