Don’t look now, but the Chipotle chart has been strong lately – and all signs point toward higher prices ahead. It’s been quite a turnaround for this fast casual restaurant concept, which was plagued by endless bad news for a while. Last week’s earnings report was solid, and they offered strong guidance. This first report under their new CEO inspired investors who took the stock up 25% last week.
With such a strong move up, I would have expected some giveback and selling, but that has not been the case here. Chipotle is heavily shorted, and without much selling pressure, the short sellers are in a bind.
Money flow is strong, the RSI is off the charts and the MACD is on a buy signal. With those readings, I would not be surprised to see this name move toward the 450’s before too long.
Chipotle Mexican Grill(NYSE: CMG) Video Chart Analysis
Take a deeper dive into the chart action on Chipotle Mexican Grill NYSE: CMG and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2017, it operated 2,363 Chipotle restaurants throughout the United States, as well as 37 international Chipotle restaurants; and 8 non-Chipotle restaurants. The company was founded in 1993 and is based in Denver, Colorado.