Chipotle (CMG): Correction Creates 20-30% Upside Potential
Chipotle (CMG) stock has recently dropped from its peak of $56.92, breaking below its previous quarterly low and showing a decline in short-term momentum. This decline suggests that the stock has lost some of the gains it accumulated since 2023. Historically, CMG has faced significant declines, ranging from 40% to 75% from its peaks.
However, despite these recent setbacks, CMG has maintained a strong long-term upward trend. The strong performance in 2023 and 2024 indicates that the current correction may not lead to a complete reversal of its trend.
The stock has initial support around $47-$48, with additional support levels at $43-$45. Given the recent pullback, there may be a buying opportunity with potential upside of 20-30% over the next six months. A target price range for the stock could be between $62 and $69.
However, despite these recent setbacks, CMG has maintained a strong long-term upward trend. The strong performance in 2023 and 2024 indicates that the current correction may not lead to a complete reversal of its trend.
The stock has initial support around $47-$48, with additional support levels at $43-$45. Given the recent pullback, there may be a buying opportunity with potential upside of 20-30% over the next six months. A target price range for the stock could be between $62 and $69.
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