Pizza Wars:

The casual dining space has been a bifurcated one, leaving some investors feeling satisfied, others with indigestion. SBUX is trading just off all-time highs, advancing nearly 5% last week. Former leader in WING now trades in bear market mode down 21% from most recent 52 week highs. A couple of pizza plays is what we will focus on today as DPZ seems to be getting its groove back now 9% off highs made last October. It is on its first 6 week winning streak in years, beginning with a strong 9.3% gain week ending 3/12 in second best WEEKLY volume in the last 6 months. Round number theory is playing a role here with just two CLOSES above 400 since undercutting the figure on 10/16/20 (double bottom pivot of 404.67 in place). Below is the chart of its main rival in PZZA, and it is lagging a bit against DPZ now 15% off its peak made in February. I think the name has room to the very round par number, which doubles not only as an upside gap fill, but from a failed cup base breakout pivot of 102.35 taken out on 1/27. Reevalute if the chart gets to 100. Pizza anyone?

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