Tweezer Top Pattern in Domino's Pizza

dpz New York, October 26th (TradersHuddle.com) - Domino's Pizza, Inc. (NYSE:DPZ) closed the trading session higher by $0.29 or 0.72% from its previous close. The latest price action developed a short term reversal pattern in the form of a tweezer top, which is a candlestick pattern that is usually formed at the end of an uptrend. Given that the tweezer top is considered a reversal pattern, traders with long positions need to monitor the price action for confirmation of weakness, and plan the position accordingly.

Domino's Pizza, Inc. (NYSE:DPZ) operates a network of Company-owned and franchise Domino's Pizza stores, located throughout the U.S. and other countries. The Company also operates regional dough manufacturing and distribution centers in the U.S. and internationally.

Domino's stock has been in a defined range with calculated support at $39.34 and resistance at $41.51. Given the possibility of short-term weakness in the stock's price, this range could be used by traders managing their positions.

Tweezer tops are exactly the opposite of tweezer bottoms, as they define a resistance point for Domino's Pizza that needs to be digested prior for the stock to move to a higher level.

Tweezer tops can be formed at the end of an uptrend, at a clear horizontal resistance point, or within a downtrend when price action is dealing with the declining resistance trend. Like any other candlestick pattern, it needs confirmation by trading below the previous day low. Below there is an example of the Tweezer Top reversal pattern:



Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:


      Site Search:

      Loading

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      Loading
      Chart
      o Dow Jones 18,269.19 ▼16.55 (-0.09%)
      o S&P 500 2,130.07 ▼0.75 (-0.04%)
      o NASDAQ 5,097.32 ▲6.53 (0.13%)
      INDEXDJX:.DJI

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:18,269.19 Trade time:3:07PM EDT Value change:▼16.55 (-0.09%)
      INDEXSP:.INX

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,130.07 Trade time:3:07PM EDT Value change:▼0.75 (-0.04%)
      INDEXNASDAQ:.IXIC

      NASDAQ

      Company ID [INDEXNASDAQ:.IXIC] Last trade:5,097.32 Trade time:3:07PM EDT Value change:▲6.53 (0.13%)
      Copyright © 2013 TradersHuddle.com. All Rights Reserved.