Watching grass grow

Dominos Pizza/DPZ reported minutes ago its Q2 (Jun) earnings of $0.35 per share, $0.03 better than the Reuters Estimates (one analyst) of $0.32. Revenues rose 7.0% year/year to $347 million vs the $330.8 million estimate.

[click to enlarge]

In the chart above, area 1 represents a well-formed intermediate term base, area 2 represents a well-formed short term base, and the three areas 3 represent up trends. Note the positive price:volume relationship through the entirety of the chart. Note also the budding stairstep pattern of base followed by higher prices, and then base again. Short term trend resistance lies immediately above at ~$26-28.

As mentioned previously, a stock that trends higher with little to no price and volume volatility typically will signal the culmination of its short term trend with volatility. With the release of earnings (a positive surprise, no less!) and a company conference call scheduled at 8am pdt a high water mark for price and volume volatility could occur today. Today's trading activity should prove interesting...