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Chipotle Mexican Grill Probes Old Highs

Long
NYSE:CMG   CHIPOTLE MEXICAN GRILL
Chipotle Mexican Grill has been a slow-and-steady gainer in 2020. It was already investing in its online model before the pandemic, and that decision paid off handsomely as the country went into lockdown mode.

CMG formed a bullish triangle in July and early August. It then broke out and surged to new all-time highs near $1,400 before rolling over with the rest of the market.

This has brought CMG back to the top of the old triangle around $1,190 and its 50-day simple moving average ( SMA ). The shares may chop around and even potentially test $1,100ish if the S&P 500 keeps struggling. However, that might provide opportunities for buyers.

CMG has one of the cleaner charts because it broke out to new highs recently without getting too overbought (like many technology names).

It’s also interesting fundamentally, with the potential to benefit from either coronavirus returning or abating.

Traders may want to watch it between $1,100 and $1,200, depending on their take of the broader market.

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