Few Stocks Pulled Back Last Week, but These 3 Did Just That

Looking at the 3 D's: Disney, DraftKings, and Domino's.

Author:
Carolyn Boroden
Publish date:
Oct 12, 2020 8:30 AM EDT

I didn't see too many stocks that were pulling back last week...but I found a few and coincidentally they all begin with the letter D. I'm looking at Disney (DIS) , DraftKings (DKNG) and also Domino's Pizza (DPZ) .

Let's start with DIS. In Disney I still consider the larger pattern in this stock to be bullish as long as price stays above the 6/26 low. I'm also seeing a nice healthy Fibonacci Price cluster of support that comes in at the $119.18-$120.93 area. This zone includes at least one symmetrical projection of a prior swing down along with multiple retracements and extensions. So far price is holding above this key support and we have seen a 15 and 30 minute buy trigger against this area. I would like to be a buyer now as long as price continues to hold above the price support cluster. If we are looking at a more important low, the upside potential comes in at the $141.76 as target one and $147.51 as target two. I will consider myself wrong this setup if the price cluster is violated.

Another stock that is giving us a pullback is DKNG. Now I do NOT have any buy triggers YET that tell me to take a long overnight, but I do want to stalk this one. The first support cluster comes in at the $45.87-$47.98 area and it includes two key symmetry projections within the cluster. It also includes a .618 retracement of a prior swing. So IF price continues to hold above this zone, I want you to go down to a 15 or 30 minute chart and look for one of the classic buy triggers as shared in the video below. If we do see a trigger, the initial risk can be defined as below the low made prior to your buy trigger firing off...OR below the low end of the zone. What I also like about this setup, is that I have Fibonacci timing cycles due for a possible low early next week with the 10/12-14 time cycles. Now if we can hold above the support, a potential upside target comes in at the $68.52 area. If a new low is made into the same zone I will have to recalculate the initial upside target. Let's see if this one fires off a buy trigger or NOT this week!

This last stock - DPZ - has also NOT triggered on the buy side just yet. After earnings we've had a healthy decline in this one. The first areas of support I want to watch for possible buy triggers come in at $382.16-$384.92 and then $377.59. As long as price holds above one of these two areas, I'd like to use a 15 or 30 min trigger before entering the buy side. The potential upside target would be around the $448 area. I am wrong this setup if both of the first support decisions are violated (below $376 area).