Our ALGO engine originally triggered a sell signal for Domino’s Pizza on July 25th at $58.00. Another sell signals was triggered on the close yesterday at $45.80.
As the chart below illustrates, the dominant chart pattern in the stock is the 13% gap lower between August 14th and 15th.
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This gap lower coincided with Domino’s rollout of their new “Quality Fresh” promotion. Early numbers from the company haven’t shown that the “premium” pizza promotion has been a success.
Yesterday’s sell signal is just inside the gap area and fits into the “lower high” chart formation.
A reasonable downside target on DMP over the medium term is $38.00.
Domino’s Pizza
