Domino’s Pizza (DPZ) should reach the blue box in this quarter

Domino’s is an American multinational pizza restaurant chain. Founded in 1960, the chain is owned by master franchisor Domino’s Pizza, Inc (DPZ). As of 2018, Domino’s had approximately 15,000 stores, with 5,649 in the United States, 1,500 in India, and 1,249 in the United Kingdom. Domino’s has stores in over 83 countries and 5,701 cities worldwide.

DPZ daily chart October 2023

In December 2021, DPZ ended a Grand Super Cycle at 567.57 peak and we called wave ((I)). Currently, DPZ is developing wave ((II)) correction. We can labeled the first part of the pullback as 3 swings lower. Down from 567.57 peak, price action made 3 waves lower as wave “a” ended at 321.15 low. Then 3 swings higher completed wave “b” at 426.44 high. Last wave “c” built an ending diagonal. Wave ((1)) ended at 291.00 and bounce as wave ((2)) was rejected at 395.00. Market continued lower and wave ((3)) ended at 285.84 and another bounce end wave ((4)) at 353.95. Last push lower completed at 285.72 as wave ((5)) of wave “c”. These 3 waves we are calling as part as double correction and ended wave (w).

From 285.72 low a new cycle began. We can see 3 swings rally that we labeled as wave “w”ending at 409.95 high. Then, it formed a double correction structure lower as wave “x” ending at 330.05 low. As price action stays above 285.72, we are expecting more upside at least in 3 swings to complete wave “y” of (x). Market should reach 454.98 – 532.31 blue box area where it should be a good place to see for selling opportunities to develop wave (y) of ((II)) lower. 

DPZ daily chart February 2024

Actually, DPZ rallied as expected in wave “y”. The movement looks like a “dead cat bounce” and it has developed an impulse structure. Then wave ((A)) could need one more high above 439.16 to end the cycle and start wave ((B)) correction or could be complete already. The thing is that we have to see a pullback as wave ((B)) before reaching the blue box area and complete wave (x) correction. If market reaches the blue box before a pullback, the structure wouldn’t be clear to know if we will see the wave ((B)) pullback or not.