There Must Be Something in the Sauce – Pizza! Pizza!
- Posted by Greg Harmon
- on December 17th, 2012
Domino’s Pizza, $DPZ, is making new all time highs and with rising trend support and a bullish Relative Strength Index (RSI) looks to continue. But there truly must be something in the sauce because two other pizza chains, Papa Johns, $PZZA, and Pizza Inn, $PZZI are also looking strong. In fact these two may be ready for a big move.
Papa Johns, $PZZA
Papa Johns, $PZZA, fell out of an expanding wedge in mid November but found footing at teh 200 day Simple Moving Average (SMA). Since then it rose back near the top of that wedge and has consolidated in a bull flag. Monday it probed out of the top of the flag and over the outsized volume by price bar at 53. It has a bullish RSI and a Moving Average Convergence Divergence indicator (MACD) that is positive to support a push up. A move over the top of the flag and then through resistance at 54 gives a Measured Move to 60 and new all time highs.
Pizza Inn, $PZZI
Pizza Inn, $PZZI, is not near all time highs. It lived life as a momentum darling late in 2011 and suffered the fate of momentum traders fleeing the scene the first half of this year. But recently it is showing signs of a big move as well. Consolidating for over 2 weeks in a very narrow range after a move off of the 2.65 level gives it a Measured Move higher to 4.15, over the August spike. This would also continue the series of higher lows and higher highs, very bullish. So maybe there is something in the sauce. Pizza, Pizza!
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- SPY Trends and Influencers March 8, 2014
- Cleveland’s Best Linkfest!
- Macro Week in Review/Preview March 7, 2014
- Top Down Options Trading, Risk Management, and Collars
- Time to Sell Corn?
- Long Term Pick of the Week: Bridges, Iron and Voodoo
- Premium Earnings 3-6-14
- Your Second Chance in Natural Gas Is Here
- The Third Pitch From OpenTable
- Premium Earnings 3-5-14