CMG (Chipotle) Buying Opportunity78.6 Fibonacci level
area of previous consolidation (buying)
Sell of shares at gap fill for easy 7-10% gain
CHMG trade ideas
Chipotle Mexican Grill Gets Support… For Now. Chipotle Mexican Grill ($CMG) Daily: So I’m a big fan of simple, easy to find technical patterns – sometimes they’re not as obvious and you have really try to see what may be developing. But that runs the risk of seeing something that’s not really there, and then reaching for something that may or may not happen. Technicals can’t explain everything, nor do i find them to exist at all times of the life cycle of a stock – at least not in a invest-able, trade-able way. Any kind of analysis is about finding a higher percentage of certainty of something happening, and never a sure thing that you can take it to the bank on.
And one of these patterns is the Head and Shoulders pattern with a declining RSI on each peak, that rounds over (or rolls over) and breaks support. When we see Chipotle on the daily chart here, we see kind of a messy H&S pattern (not all patterns are textbook pretty), better visible on the hourly scale, if you want to further examine it. We see that this stock had a pretty good run up since Nov of 2016, and in March of this year, really pushed higher to around the $500 mark. We see that after it became overbought on the RSI and the MACD started to roll over, the proceeding technical levels continued to decline, while price held up or went higher still – this is a Bearish Divergence. And as this continued to do so and the last peak made a lower high, and broke through the neckline support as well as the 50 day moving average support, well, as they say in the David Attenborough nature shows, “Sadly, there can only be one outcome, now…”
Let’s note the level where it ended the day today after a 7.26% decline – it got support from the trendline support line beginning from Nov 2016, where this upside move began, and stopped and closed pretty much right where that line meets price. RSI is in oversold territory and MACD can go a bit farther – keep in mind that RSI can kinda move sideways here along the bottom (or even go deeper), as price continues to drop. If $CMG breaks below this support, we would have to assume that it’s gonna go down to $394, as i do not see any other meaningful support between current levels and that price point. As always keep eyes on the RSI and MACD to show you what it may be doing before it shows up on price of the stock.
CMG Should hold 423 the trendline and also 200 ma else will be back under 300 very soon. tomorrow might be a deadcat
CMGWill start looking around 418-422. Sold my calls yesterday at 456.5 so luckily didn't suffer my 448.5 stop loss. Painful to watch this.
CMGLook at the past. I feel like I'm cheating in school... let's see if it holds the line of this sideways correction tomorrow.
CMGSold my calls from 453 for 70% gain and waiting to see if there is another leg up, or if this comes back to test 452. On hold, waiting for a reasonable entry opportunity.
5.23.2017 Trade Idea: CMGIf you are interested in more of our trades, check out our profile and Tradingview Indicator @ChaoticTrader
Selling CMG because of rangeThis is a great example of a chart that I would choose to sell an option rather than buy an option. Looking at the historical pattern of this stock, it is sitting in a nice range, so I will look for premium above 490 to sell. Stocks with higher implied volatility paired with weekly options make a great pair to sell options! Read why at www.shecantrade.com
Chipotle Mexican Grill / LiteCoin TradingWhenever Chipotle Mexican Grill breaks away from the price of Litecoin USD, you can enter a trade on Chipotle. Only 6% maximum drawdown.
Chipotle will pullback over next few daysmoved up 5.4%, a down move to that tune is likely. I love stocks that have ranges.
Cross ResistanceLook at the chart, please.
I am sorry for the short comment. However it became very unconvenient to post text without seeing the chart now.
If you dislike this new "feature" of the big idea-window as well, please report it as a bug as I did. Perhaps they will listen to us if some more people disagree.
