Papa John's $PZZA has been in its most significant consolidation/correction period since it went public. Since late 2016, price has been sliding from around $90 to just under $40 in August before the recent rebound. Perhaps, the recent rebound is part of a greater recovery. PZZA Daily Chart(click to enlarge)Price Bottom?- On the daily chart, we can see that price may have completed a rounded bottom.- The key price action was the cross above the cluster of 200-, 100-, and 50-day simple moving averages (SMAs).- Breaking above the critical support/resistance pivot in the $55-$55.20 area was also a sign of bullish reversal.- Finally, the RSI was able to tag above 70, and then hold above. This suggests a build up of bullish momentum. - In terms of the momentum signal, we should note that the RSI was also reflecting bullish momentum at the beginning of 2018, but the market eventually faded PZZA further. The difference this time is that price is above the 200-day SMA. - The current breakout suggests that the prevailing downtrend might be over. However, the shift might not be straight into a bullish trend. Maybe PZZA is entering into a choppy period of consolidation.- With this consideration, we should limit the bullish outlook to the 2018-high just under $70 a share. There might also be resistance at the common resistance around $63.- If price does retreat, the key will be whether PZZA can anchor itself above $50. The ability to do so will add bullish bias within the consolidation period and suggest an eventual bullish breakout. - Falling below $50 however suggests the market is still tentative and is sideways if not still bearish.