Chipotle overbought after earningsChipotle saw a hefty jump after topping earnings estimates earlier this week.
GoNoGo Trend indicator gave a “GO” indicating the environment was bullish for the Mexican grill on April 14th, when prices were around $785.
However, note that there may be a little consolidation or minor correction here as this week’s action has caused the GoNoGo Oscillator to rise to an extreme. This means the stock has become overbought. With the price where it is, GoNoGo Charts is showing a red, short term correction arrow on the current, daily, bar. This suggests a possible correction within the trend, which at the moment is a “GO”. If this is confirmed at the close of the session, look for price to struggle for a few days.
CMG trade ideas
CMG SHORT: Gonna head lower next week CMG has enjoyed a massive bounce from the lows and has been coiling tightly into the bearish wedge. It has now also backtested the broken uptrendline and here is a good spot for a short. I expect CMG to break lower next week and perhaps to even test the March lows.
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.
Disclaimer:
We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature,
and are therefore are unqualified to give investment recommendations.
Always do your own research and consult with a licensed investment professional before investing.
This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
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.
WeakCMG didn't see near the bounce that most stocks did on the initial bounce this week. Signaling some weakness in the stock. Looking for a quick pocket fill down to 637. If that were to break...50 on the fib looks like the next area of resistance.
I like the risk/reward around 637 for a long here. Could see a bounce to the 200dma around 780 or even a gap fill around 840 depending on strong the overall market recovers.
Chipotle Mexican Grill bounce trade $cmg
Good rick reward with major support holding despite intense selling.
Possible oversold reversal trade with 200 Moving average as target
Entry level $741
Target price $790
Stop loss $714 below major support
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Chipotle Mexican Grill Needs a Reset
Stock has broken out but meet resistance at fibonacci expansion 1.618.
Overbought conditions exist so could very well consolidate for several sessions.
Valuation incredibly high but market seems not to care.
Trade with care as a downturn in market will result in major profit taking in this stock
Is it Good Time to Sell this crazy stock? $CMG Bearish indicatorWeekly candlesticks looking lightly bearish . indicators are overbought . it could slowdown and target the previous bottom to test or re-confirm it at 730 if broken then will better opportunity for short positions otherwise it will be bounced to new ATH
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!