Technicals | Aug 29 2023
This story features DOMINO'S PIZZA ENTERPRISES LIMITED. For more info SHARE ANALYSIS: DMP
By Michael Gable
Last week, we saw markets sell off into Friday's Jackson Hole meeting, concerned that Jerome Powell will say something to blow up the market.
In the end, there were no great surprises. It has been clear for a while (well to some of us at least) that central banks will not signal that rate cuts are a possibility because risk assets will take off. They would rather stay hawkish so they don't have to raise rates any further.
Every now and then, however, markets get too caught up in the short-term with what is said or not said, or what could be said or not said.
Instead, we need to rely on the data, and the data continues to show inflation heading the right way. US markets from here look likely to build a base sideways in the short-term before resuming their move higher. Only a break under about 4300 on the S&P 500 Index would be a cause for concern.
Locally, the S&P/ASX 200 Index also continues to trade sideways here at the lower part of its range, so the next move most likely would be up.
In this week’s report we have analysis on Domino's Pizza Enterprises ((DMP)).
DMP remains in a long-term downtrend, but it is showing signs of putting in a base here and preparing to head higher.
Last week, on the back of the full-year results release, the shares opened lower near support at $45 and then rallied very strongly to finish the day much higher on good volume (circled).
This looks to be the start of a recovery in the share price. Current levels are a tentative buy with a daily close above $54 being a more conservative entry point. The initial targets up would be in a range between about $64 and $67.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
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
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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.
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For more info SHARE ANALYSIS: DMP - DOMINO'S PIZZA ENTERPRISES LIMITED