Has Chipotle Mexican Found Four-Figure Support?
Chipotle Mexican Grill joined the 4-digit club a month ago, riding positive momentum from its strong results on April 21.
Since then it’s squeezed into a very tight range as the economy reopens. Once or twice, prices tested and held that important $1,000 level, which suggests it’s building support up at these new highs.
CMG took a stab lower on Friday, below its lows from May 27-29, only to snap right back. That now looks like a failed breakdown from the range.
The restaurant chain has been one of the best-performing consumer discretionary stocks this year thanks to a strong grip on its core market of younger, smart-phone wielding diners. If CMG was able to thrive when coronavirus hammered the economy, what happens as social lockdowns end?
This stock resembles
AMZN
yesterday: short-term overbought following a breakout. Their high and tight patterns are consistent with strong underlying fundamentals. (See narrowing Bollinger Band width.) Traders may now look for it to move higher as the price action expands. Friday’s low of $964.50 can also serve as a potential risk-management area.
Since then it’s squeezed into a very tight range as the economy reopens. Once or twice, prices tested and held that important $1,000 level, which suggests it’s building support up at these new highs.
CMG took a stab lower on Friday, below its lows from May 27-29, only to snap right back. That now looks like a failed breakdown from the range.
The restaurant chain has been one of the best-performing consumer discretionary stocks this year thanks to a strong grip on its core market of younger, smart-phone wielding diners. If CMG was able to thrive when coronavirus hammered the economy, what happens as social lockdowns end?
This stock resembles
AMZN
yesterday: short-term overbought following a breakout. Their high and tight patterns are consistent with strong underlying fundamentals. (See narrowing Bollinger Band width.) Traders may now look for it to move higher as the price action expands. Friday’s low of $964.50 can also serve as a potential risk-management area. 