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.
SSS - CMG Continues to Find Resistance at 300 Price Level
|Published:||6 Oct 2011 15:56 ET|
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.