Squeeze on the Chart: The Calm Before the Move If you've been around here for a while, you know I love a good squeeze setup. It's one of my favorite patterns. A squeeze happens when volatility dries up - Bollinger Bands compress inside the Keltner Channels - and the price action gets really quiet. It's like a spring winding tighter and tighter. And here's the kicker: when that spring releases, it can lead to a sharp move in either direction. What has me fired up about DPZ is that this squeeze is happening on the daily chart. A squeeze on a higher timeframe like this often leads to a bigger move. And the fact that it's happening just under 52-week highs? That's a recipe for some serious momentum. Stacked EMAs: A Clear Signal of Strength Now, let's talk about those stacked EMAs (Exponential Moving Averages). This is one of my favorite ways to confirm that buyers are in control. When shorter EMAs - like the 8-day or 21-day - are stacked above longer EMAs - like the 34-day or 55-day - it tells you that the trend is intact and strong. Every dip is being bought, and the stock is holding key support levels. On both the daily and weekly charts, DPZ's EMAs are perfectly stacked. That's exactly the kind of price action you want to see when you're looking for continuation moves. It's a textbook sign of bullish momentum. Relative Strength: DPZ Leading the Pack You know I'm always hunting for relative strength. It's one of the best ways to spot where the big money is flowing. Here's the deal: while the major indices are just now turning positive for the year, DPZ has already delivered a 17% gain. That's not luck - that's institutional money stepping in. When a stock is leaving the rest of the market behind, it's a clear leader. And leaders are where the big moves happen. Earnings Beat: Momentum Fuel Now, I don't dive into fundamentals too often, but it's worth noting that DPZ just delivered a solid earnings beat. The company posted a GAAP EPS of $4.33, beating expectations by $0.26. Sure, revenue came in a little light, but global retail sales were up 4.7%, and they reaffirmed their 2025 guidance. Oh, and don't forget about their new partnership with DoorDash. That's a big deal - it opens up a ton of growth potential in the third-party delivery space. When you combine a strong earnings story with a solid technical setup like this, you've got a stock that's primed to grab attention. And attention is what drives breakouts. Your Action Plan All right, here's the plan, gang. With that daily squeeze and the stacked EMAs lining up, this is looking like a textbook breakout setup. I'm not chasing here - no way. I'll let the trade come to me. For an entry, I'd be looking at some call options, ideally giving myself a little bit of time. Something like the next monthly expirations or even going out a few weeks. I want to make sure I have enough time for the squeeze to fire and the move to play out. If you're looking for more setups like this, my Opening Bell Aftershocks strategy is designed to catch explosive moves right at the open. I've used it to nail 100–300% winners in minutes. 👉 Click here to learn more about Opening Bell Aftershocks. |
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