CMG could be in accumulation phaseChipotle Mexican Grill, Inc recently announced that his CEO will join Starbucks, is this shift concerns investors? We can analyze what happened with the stock by looking at the price/volume.
What we see is a clear markdown, followed by PS (Preliminary Support), SC (Selling Climax), AR (Automatic Rally) and finally the ST (Secondary Test), it's interesting that this Secondary Test happened after the news of actual CEO will join Starbucks.
Ok, so, after that news the stock the stock plummeted? Not exactly, aggressive buyers plus a lot of sell order limits appeared on the scene, now the question is if we've seeing an accumulation phase or a re-distribution. Personally I think this is accumulation but time will tell, if bullish are in control, first target should be around 55$ level.
Disclaimer: Content of this post is for information and education purposes only and should not be treated as investment or trading advice.
