CMG another breakoutI spoke about this trade a few weeks ago regarding the 1300 level and how much the consolidation is lining up for a good trade. Well look at this reaction. Get your burritos!
Trade ideas
CMG - Bull TrapBased off the previous two cycles, CMG will try to test 1350 before pulling back all the way to 1200. MACD still indicates clear bearish cross over in 4hr chart. Good short or put opportunity. Stop loss 1350.
CMG new buying opp1300 was the original buy for this stock and we have another opportunity to make another round of buying. still at this level with a slight pull back. www.investoratlas.org
Is Chipotle Mexican Sneaking Toward a Breakout?Chipotle Mexican Grill is one of the biggest restaurant survivors of the pandemic. It’s consistently beaten estimates by growing in the digital space.
Like many other beneficiaries of coronavirus, CMG has chopped in a range since September. However, the price action may be pointing toward a breakout.
First, the shares closed yesterday at a trendline running along the September and October highs. (It was also the highest close in over six weeks.)
Second, MACD is starting to rise.
Third, the range has been very tight. This is clear from the closely packed moving averages. We can also see the tight range in the Bollinger Band Width and the inside week (see the candle starting November 23).
CMG’s a little like Netflix yesterday. It’s done do little for so long, traders might have forgetten about it. And that’s exactly why it could be worth a look now.
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$CMG Setting up a BreakoutPotential double bottom on $CMG is forming. Pattern entry is not until a break of the green line on the chart but early entries can be taken on the break of the down sloping trend line (blue on the chart).
CMG TightCMG is getting super tight. I feel like i am constantly using that work "tight", but thats what I am always looking for in up trends. After a consolidation a move will happen. If its in the direction I have anticipated, I will make a measurement to see if it fits my risk profile. If the risk fits I will take a position. I do not have a 50% batting average. Most traders dont. So I always anticipate that my stop will be hit. No matter what, if my stop is hit, I am out.
Chipotle completing a double bottom with volatility contractionChipotle is heading out of a double bottom with a buy point at 1366.66. The volatility contraction makes for a nice tight 10d ATR (x2.7) stop of 5.86%.
Earnings and sales are starting to recover (still a ways to go). Analysts have been upgrading price targets to ~1500.
Buy Point: 1366.66
Stop Loss: 1286.57
Position Size: R17.06
CMG: Double TopDouble Top
Pros:
Descending volume during formation
RS flat but above 0
R/R ratio above 5
ATR flat
Cons:
PPS above 50MA and 200MA
200MA ascending
250RSI above 50
If confirmed:
PT = 1015.76$
Shorting opportunity in ChipotleIn 2020, Chipotle paid a record high fine in the food industry of $25 Million to settle criminal charges because of microbial contamination in its food, yet illnessness persist. www.morningstar.com
Short at the confirmed/retested break of the massive double top neckline. Close partial shorts/profit at targets iindicated (fib retracement). Risk to new highs.
Maybe there'll be more room for news that bleeds (or poops) after post-election drama settles down. Hopefully the next presidential administration will take food safety more seriously and impose harsher penalties.
Meanwhile, wash your frickin' hands !
CMG earnings 10/21 after hours possible epic dropChipotle is currently trading at an egregious 149 P/E! How is a restaurant, in this COVID economy, trading at such an obnoxious valuation? It’s not like this is a ZOOM or TSLA. Lol. To put this in context, MCD P/E = 36, YUM P/E = 29. Something is out of whack. Also, CMG is trading at $200+ over it’s 1 year trend line for no apparent logical reason? Good luck and happy trading friends...
$CMG posting a disappointing earningsThe PEAD is projecting a neutral outlook for $CMG after it missed its earnings estimate, the price is currently trading below the lower boundary of the PEAD cone.
CMGCMG EARNINGS ARE ON WEDNESDAY AFTER CLOSE. THERE IS A 94 POINT MOVE PRICED IN.
I WOULD GO LONG OVER 1360.
LOTTO TRADE IDEA: 1400C BID/ASK: 23.10/24.00
