The Papa Johns Franchise has not been doing so well since 2017. Earlier in 2018, the founder-CEO John Schnatter resigned, which got a brief bullish reaction that was faded into new lows not seen since 2014. However, after almost hitting that 2014 low of $37.45 in August, price action began percolating, suggesting a bottom.PZZA Daily Chart(click to enlarge)Price Bottom?- The first evidence of a price bottom is the strength of the rebound after price tagged those 2014-lows just under $40 per share. - There's been a 25% rebound since the August low as price climbed above $50 this week.- Another key evidence is the RSI pushing above 70, reflecting bullish momentum. But we saw this earlier in the year and it was a false bullish breakout. So, we will call this more of a NOT-BEARISH signal then a bullish one.- What separates this strong rally then the other ones in 2018 is the fact that it is coming from strong volume. - The strong volume in July and August and again this week suggests this is more likely a bottom than the attempt from late 2017/early-2018. Resistance- There is still an issue with the bullish outlook. We are calling it from one bullish swing and price is still under some key resistance factors lined up around $55. - There is a falling trendline resistance as well as the 200-day simple moving average.- If price retreats from $55, we want to see if there will be support around $46-$47. A break below $45 puts pressure back at the lows around and below $40. - In this scenario, I would be more comfortable trying to buy on a dip to $40. - If the price broke above $55 and then pulled back, I would be more comfortable looking for support in the $47-$50 area. - This is because without breaking above $55, there is more of a chance that bears are still in charge and can push price to or even below the current low on the year.- On the other hand, some traders will argue that the strong volume is a great indicator that price is bottoming, With this perception, we can look to buy-on-a-dip (in the $47-$50 area) regardless of whether price breaks above $55.