Asset Watch
Tuesday, February 28, 2023
When a weak Q1 earnings print hit the wire on Apr. 28, the stock traded 10% lower intraday before ending down by more than 5%. Similarly, while an intraday rally didn’t occur this time around, the nearly 12% decline on Feb. 23 was another example of investors’ disdain for the disappointing performance.
However, the price action from mid-May through August showed that after Domino’s Pizza found a bottom roughly three weeks after the April print, buying the weakness proved profitable for the optimists.
Likewise, the large gap on the chart’s right side shows a similar setup. And while the stock closed below its October low on Feb. 24, there is support in the $280 range.
So, should we expect another reversal, or will investors be more spiteful this time around?