Cup and Handle Earnings 7-20 AMCEarnings tomorrow after market closes.
There was a significant divergence on RSI but hopefully this has corrected. Divergence is the disagreement between indicators and price. There can be bearish and bullish disagreements. Many draw a trendline on the peaks to see a bearish divergence and a long the valleys to see a bullish one.
No recommendation.
Moving averages are all where they are supposed to be. All are sloping upward. Negative volume is very high.
Trading as earnings can be hazardous to your health.
Tomorrow is another day (o:
Trade ideas
CMG Trading SidewaysCMG is currently very extended and has bounced between 1320 and 1565 in 2021. With the two major pullbacks in CMG occurring when the stock had an RSI of above 60, it seems very likely that the company is due for another pullback now that the RSI has surpassed 70.
On the other hand, the stock does like to be volatile and can fake people out like on March 5th when it looked like the stock was going to break downward, however, the stock ended up returning back to the channel. I would not be surprised if CMG did it again and psyched people out by destroying shorts and then finally plummeting back to the 1320 range.
Chipotle Mexican Grill - Target Exceeded - Take ProfitsAs per my 14/06 report:
"Chipotle Mexican Grill (CMG, $1364) | The share has breached the downward trend line extending back to the peak of 19 April, while potentially developing a double bottom formation. I'm looking for a minor retracement and an eventually break of the mid-point to trigger the setup. Note the daily RSI now have crossed back above the weekly RSI. Trade Levels: Buy on a break above $1374. Stop-loss: $1348. Target Range: $1422-$1433."
Good run over last 10 trading days. Now trading $1497.
Take profits into the weekend.
Megaphone / Bull FlagStill in a down trend of megaphone.
Bull flag forming inside down trend.
With inflation rising being the next catalyst for overall market collapse I expect this to continue down considering the former will curb discretionary spending on these types of biz.
WK looks - sideways so not sure but trend defined.
Chipotle bounces off price support$CMG.
As long as market trend is bullish, $CMG is a buy.
Iron Condor candidate?
Vertical spread towards next ER, end of July, if I were to go in.
Look for volume confirmation.
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Inverse Head and Shoulders Earnings 4-21Earnings 4-21 AMC (estimated) Long entry is at neckline with an uptrend.
Possible stop below lower shoulder which is the left shoulder/1350 Right shoulder is 1401.70. It is considered more bullish if the right shoulder is higher than the left. The head is at 1256.27
Not a recommendation.
Trading close to earnings is risky. It depends on how earnings are received by the market whether they beat or miss.
CMG🌦This could be a great earnings play. ER is 22 days away.
Pattern recognized: Running flat
Hypothesis: Bullish
Catalyst: earnings
Conclusion: Would buy calls but they're too costly for my liking. Another example of how the stars don't always align. Trust the process.
***This does not constitute financial advice.***
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CMG - 13.50% Potential Profit - Ascending TriangleAscending triangle formed after a 9-month monster rally followed by a correction period. Price seems to have graduated from its uncertainty and ready to keep that rally going.
Support held strong in the past two weeks and I feel that the risk/reward ratio is excellent on this trade. Positive vaccine news could act as a catalyst.
- Target Entry $1406.15
- Target Stop Loss $1384.94
- Target Exit $1598.50
About me
- P/L: Oct-Nov-Dec Trading Suspended | September +49.18% | August: +232.32% | No Trades without Analysis
- Note that I tend to adjust stop losses in order to secure profits early and preserve capital. This means that the target price is going to be achieved as long as there are no strong pullbacks that trigger my new adjusted stop loss
Like the setup on CMGI did a scan this morning of opportunities in stocks and found a setup I like in NYSE:CMG . It had a volatility spike on the open down to a 50% retracement that matches with past Daily price inflection. This could be the pullback for a retest of the high followed by a potential break.
I am personally passing on this trade just to stay flat going into the New Year with a fresh null value.