The share price of Dominos has been in focus recently as the up trend is about to hit the previous resistance. During lockdown and the social restrictions that followed it seems that the public have had a huge appetite for both pizza and a slice of the company’s profits.
Looking at the chart the share price has been making higher highs and higher lows (price waves) for a while now but the last consolidation top was at 29,751.81. The price then gapped through that zone and has not looked back since.
The price came all the way back to test the 30,000 area before continuing on its upward trajectory and now the previous wave high is the major support (marked by the lower rectangle) at 38,000.
On Trading College’s signature software, the Pro-Trading System, the storyteller indicator has now given us a new bullish signal. The confirmation of the trend would be a break of the resistance at the high on the chart of 42,445. If this level breaks then it could be game on for the bulls and there could be a further extension of the trend.
Dominos Daily Chart
Dominos Weekly Chart
On the PTS, the weekly chart shows that the price has been on a great bull run for some time. Every time a key high is broken the uptrend continues. Furthermore, the storyteller indicator is still above the zero line. Whenever there has been a good momentum trigger (i.e. when the indicator moves from below to above the midline) the price continues to move higher.
Traders often ask the question: is the market overextended? This is a very mature trend but you must still ask yourself, would you bet against it?
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