Chipotle
Chipotle Mexican Drill $CMG "Breakout"$CMG is launching a new breakout. The volume was above the average yesterday. There might be a pull back to test $1087 before it continues to rise
12 months Consensus Price Target: $898,19
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Fast Food Stocks: Chipotle Mexican GrillChipotle Mexican Grill Trading Plan.
Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants
in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission-style burritos.
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Will $CMG find its way again?NYSE:CMG
A day after an earnings beat, Chipotle decides to veer off course. It falls right out of the channel its been creating since November of last year. With a pretty good earnings report and projected first quarter of 2020, there is definitely room to grow. Strong revenue, more locations, and changes in their menu will keep this stock flying in 2020. It's just a matter of how high.
Your Chipotle Burrito is about to go sour - $CMG Shorting this baby because:
1. Hammer candlestick on daily
2. Triangle forming with two red candles already
3. Price touching upper Bollinger Band
4. TD Sequential is at count #9. One of the next two candles will be a TD count #1
This is like a ripe avocado about to fall and get smashed into a nice little side of guac. I say "little" because the reward on the short side is not great considering the current strength of the stock. I would set the stop loss on the high of the TD #7 candle of Jan 3. I would take 50% profit at 9EMA, and close out the rest at 20MA. I would also play this with puts considering the price of the stock.
CMG, Chipotle Mexican Grill - Trailing StopNYSE:CMG
The head and shoulders is one of the most powerful trend reversal patterns.
If you add that it happens in companies that respect our parameters to enter and in which we like to further invest, and in this case also eat ;) then the only thing to do is to enter Long and ride the trend until the price action tells us to get out and wait for a new signal.
Technical Analysis + Money Management are the keys.
Good Trading to All!
CMG Update (Important)CMG stock took a bad turn with its last-minute reversal, which unfortunately went below the critical level of 842 it took the edge off the bullish sentiment. It's now difficult to say if it'll break out above, as it missed the previous high of September 9th. The Heikin Ashi candle on the 'weekly' is still bullish and so are many other indicators, so I would personally rate this neutral into Earnings. Get out before close, or balance your trade.
CMG Pre-Earnings UpdateCMG broke out above it's 'diamond' formation, labeling it officially a diamond continuance (and not a reversal ). 9 out of 10 indicators confirm the stock to be bullish towards 900 post earnings, 950'ish by end of this month, and the 1000 mark can be broken by the end of this year. I did use some old-school tricks to get higher precision trend-lines, so I've adjusted those accordingly. Simply great technicals throughout, no major hick-ups or mentionable signs of weakness. Incredible to see this stock continuing its incredible streak, which is rather rare to find nowadays. Will update one more time next week before ER due on Tuesday AMC.
Diamond BreakoutHere's a rather rare find. There's another spot for a 'weekly' candle within the diamond, and on the next one we should know for certain in which direction it'll go. Diamonds tend to 'reverse' more often than they do an upward 'continuance'. In CMG's case the candles reach higher at the top but close lower, thereby suggesting a downward bias. In addition, the main (middle) candle, also called "stem" is negative, which also has a bearish bias. Last but not least, the 'weekly' PSAR break makes this even worse. Diamonds always breakout with high volume, which makes this ideal for options trading either way. This is likely to drop towards 720-730 on earnings release.
Watch how the next CMG charts will copy this ;)
Cheers
Chipotle Mexican Grill beats by $0.33, beats on revenueRevenue increased 28.1% to $1.07 billion
Comparable restaurant sales increased 17.8% (including 0.6% from recognized revenue previously deferred related to Chiptopia)
Restaurant level operating margin increased to 17.7% from 6.8%
Net income was $46.1 million, improved from a net loss of $26.4 million
Diluted earnings per share was $1.60, improved from a diluted net loss per share of $0.88
Opened 57 new restaurants