Who can resist pizza? Noone. Not even my superfit health nut wife. And with the Super Bowl this weekend the ads for snacks, beer and pizza are everywhere. one you will see a lot of is from Papa John’s as they have had a partnership with the NFL. So with pizza on the rise and Papa John’s tied to the big game, how does their stock look? Is it as irresistible as the pizza?
In fact the chart of Papa John's(NASDAQ:PZZA) looks pretty good heading into the big game. It moved higher in mid December to a peak just under 64 out of a base that touched the 20 day SMA. That 20 day SMA has been great support for the stock rise since October. The consolidation under 64 came close to touching the 20 day SMA again last week before the price ran back up to resistance. While that happened the overbought readings on the momentum indicators works back into normal ranges. The RSI has already reversed back higher and now the MACD is flat, stopping the fall. This sets the stage for the next leg higher. And a break over 64 would carry a target to 72 on a Measured Move. Maybe that will happen before the big game Sunday. Keep an eye on it.
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