Technical outlook – Technical analysis strategies are used to forecast future price moves by analysing past and current market action.
As we examine the chart formation of Domino’s Pizza Enterprises Limited (DMP), we can see there are three bearish posted candles, which are Bearish Dragonfly Doji and a Hanging Man.
Hanging Man is a bearish reversal pattern, which occurs at the top of a trend.
This pattern appears after or during an uptrend.
It is a single candlestick pattern, it also resembles with Bearish Dragonfly Doji.
The only difference is doji has the same opening and closing while Hanging Man has a small real body at the upper end.
The colour of Hanging Man (being, bullish or bearish) is not important.
The strategy to this assessment is that the Hanging Man (typically) indicates the end of an uptrend, hence, adding a short position can be initiated post confirmation by way of a gap down opening or a lower close or a bearish candle the next day of Hanging Man day.
Therefore, a move beneath $66.00 should confirm a pullback to $61.00 to $62.00.
Company Overview – Domino’s Pizza Enterprises Limited (DMP) is engaged in the operation of retail food outlets and franchise service.
The Company holds the exclusive master franchise rights for the Domino’s brand and network in Australia, New Zealand, France, Belgium, the Netherlands, Japan and the Principality of Monaco.
The Domino’s brand is owned by Domino’s Pizza, Inc. which operates within the Quick Service Restaurant (QSR) pizza segment of the fast-food market in Australia and New Zealand. Former Names: Domino’s Pizza Australia New Zealand Limited, 21/12/2006.