Domino’s Lined Up

This story features DOMINO'S PIZZA ENTERPRISES LIMITED. For more info SHARE ANALYSIS: DMP

By Michael Gable 

Much has been made of the US markets going to new highs and our market stringing together an impressive run of positive days. With the US taking a while to finally make a new high, it could mean that the US market has much further to go, with plenty of cash needing to now be spent. Or it could be one last lunge from the "fear of missing out" crowd. How it handles any weakness in the few weeks will give us a clue. If it gets sold off just as quickly, then we should be cautious of the US market. If it can ease back and hold its own, then it is going much higher.

Our market has seen volume drop off significantly in the last couple of days so we should see a move back towards that 5300ish level over the next few weeks. But the recent move up bodes well for the rest of the year. How it dances around reporting season is another matter. This week we take a look at Domino’s Pizza Enterprises ((DMP)).
 

 

The trend for DMP has been very strong. It doesn't often pull back very far against the trend and we can see this happening again here. Since the May high, the stock has had a fairly flat consolidation. It now appears to be breaking out of this, with a crossing on the MACD (circled) also indicating an opportunity to buy. DMP now looks like to resume the uptrend and head to new highs, leading into their full year results in August.
 

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms