Here’s your stock for Sunday. Check out Dominos Pizza (DPZ) (January 30, 2017)
DPZ
We are looking at Domino’s Pizza ( NYSE:DPZ ), because I think the stock is a good buy here. The stock has bumped up a few different times at about 170.00, $171.00, right? Well finally it is breaking through. Volume a bit heavier than usual and you can see the stochastics, which is a momentum indicator, is overbought. We like overbought. Stocks that get overbought tend to stay that way for a while. So that is what is happening here with Domino’s Pizza ( NYSE:DPZ ).
Now zoom out and look at the weekly chart. This is not, in my view, a trading stock. This is just a stock that you hold. It has been going up for years. Who doesn’t like pizza? The stock is just drifting upwards. New high. This is a stock that I think you can actually be buying at this new high. If the stock pulls back a bit, frankly, I think that is something that you can buy more of, because you could see the channel; from 170.00 down to 160.00, clear back into October. Now we are getting ready for the next earnings move. Boom! I think this stock is going to work for you.
I would want to buy it here and, frankly, it is the kind of thing where you have got to have a big commitment to it. Because anywhere down here just makes it a better and better buy. Ultimately your stop would have to be clear down below here. I don’t think it is really a tough trade that way. I think this is a stock that you can just buy and hold for a while.
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