It is now the holiday shopping season, or as Barry Ritholtz calls it Shopmas, and no one wants to do any cooking lest they lose out on a sale item at the mall. In America that means ordering food and for many pizza. The first name that comes to mind in the pizza chain business is Domino’s Pizza, (DPZ). Not a bad call, and from an investment or trading perspective it is also a good name to think of. The chart below shows a long rising trend going back to June 2012. The 50 day Simple Moving Average (SMA) has acted as support over this time and it is close to there now. It offers a new chance to get into the stock on either a hold of support at that 50 day SMA at about 68 on a pullback or on a break above the blue resistance line at 69.80.
But there are other pizza stocks to consider. Pizza Inn, (PZZA), has had a strong trend higher since June of this year. The rising blue trend line has acted as support outside of a one day crack in September and the 20 day SMA has been important in this name as well. It is pulling back Monday in a bearish Engulfing candle that bodes for more downside. Should that trendline hold it could also be a good time to enter the stock for a continued tend higher.
But maybe the best looking stock chart in this space is that of Papa John’s International, (PZZA). This stock jumped higher in June 2012 and has had a strong trend higher since. That trend has accelerated since early October and the stock is now consolidating in a bullish flag. The break of that flag higher carries a measured Move to about 95. So which pizza are you going to order?
Disclaimer: 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.Original post
Papa John's International