Asset Watch
Thursday, January 5, 2023
Domino’s Pizza lost its 20-day moving average in early December and has been stuck in a downtrend ever since. When the stock sunk below its 20-day MA in January, it took roughly five months before a sustained rally occurred. Similarly, when a similar breakdown below the 20-day MA occurred in late August, it took roughly two months before a sustained rally occurred.
It’s now been less than a month since the most recent breakdown unfolded, and if history is any indication, more weakness could be on the horizon.
So, should you wait for a pullback near the May ($323) and October ($300) lows before making your move?