SSS - CMG Continues to Find Resistance at 300 Price Level

Published : October 6 2011 at 11:56 ET

Chipotle Mexican Grill (CMG) broke down through its 50-day moving average last week, making it shortable at that point. Since then the stock has moved lower and appears to be consolidating the prior move to the downside in a small bear flag type of formation just above the 200-dma. We think the stock remains shortable here using the 300 level as your rough guide for a stop, which is only about 2-3% above where the stock is trading currently, as we see on trhe daily chart below. The next downside price targets that come into play are the 200-dma at 277.85 and the mid-August low at 271.53.

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