November 9 Chart of the Day - Domino's Pizza
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Whether you like Domino's Pizza (DPZ) or not, you likely know the restaurant chain and its top-selling product: pizza. The company is doing something it hasn't done before, working with Uber Eats on the delivery of its pizzas in an attempt to return its stock price to the pandemic time frame $567.57 all time high (ATH) levels.
Trading around $372 earlier today price has retreated significantly from its ATH down to the $285 area before the bulls stepped in to push it up.
From a price action technical analysis perspective on the monthly chart we can see that during that trip price crossed a defined change control zone 7 times...
The zone is the dark gray shaded rectangle roughly between $370 and $380.
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
Down on the weekly chart we can see this price action even more clearly and that price is currently in the middle of the change control zone.
We've added some Fibonacci levels and another trend line to help identify potential levels of interest in both directions for both investors and traders to develop their plans from.
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
Take a look at the charts and let us know what you think.
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