PPR- Chipotle Mexican Grill (CMG) Pocket Pivot Buy Point on Friday

Published : September 26 2010 at 18:46 ET

We get a lot of emails from individuals asking about pocket pivots, but so far no emails asking about Chipotle Mexican Grill (CMG), which flashed a pocket pivot buy point on Friday. Note from the daily chart of CMG, below, there were two prior pocket pivot buy points in the pattern before the standard new-high base breakout buy point on September 1st. This recent pocket pivot is an add point for existing CMG positions, although can be tradeable for more aggressive individuals who want to take an initial position here with the idea of catching a fast move. CMG does not tend to obey its 10-day moving average, hence that is not a selling guide for any CMG stock bought further below at previous buy points. However, aggressive traders taking a position here should consider using the 10-day moving average as a guide for handling any stock taken up at these higher prices. We thank our friends at HighGrowthStock Investor (www.highgrowthstock.com) for their gracious permission in allowing us to use their excellent charting and fundamental data tools.

We don't have a position in CMG, but we should. ;-)

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