Chipotle Mex Grill CMG Daily - Rally to 50% and EPS resistanceCMG - ready for another go at CMG on the short side - The last stop was very close at only 1 ATR and it got hit right away. Oddly enough, that at least shows some strength in CMG for future reference. If CMG was very weak, it would have stopped at the key resistance level that I highlighted. The fact that it could get back up to the mid-point of the decline is a good sign for it longer term.
CMG also tagged the earnings line that I have drawn here. That is a key resistance level and a low-risk level to sell short against. I missed pointing it out as a trading level for us here.
The ATR(11) is 10.8 points, which means CMG is twice as volatile as the stock market. I see 555 now as a stop level and my target will be 510 instead of 500 on this 2nd effort.
542.65 last, -2.77
May 31, 2014 12:42PM EST
Tim
