0HXW trade ideas
Chipotle Mexican Grill, Inc. (CMG) Epic Trend Line To WatchChipotle Mexican Grill, Inc. (NYSE:CMG) has recently run into an epic trend line that signals a longer term top in the stock. This trend line stretches back to 2007, 2012 and now 2013. Each time this level has been reached, the stock has pull back significantly. A pull back over the next 6 months could yield an easy target of $450.00.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Short idea for $CMGBearish Harmonic Pattern/Fibbonaci lined up with a Major Resistance Zone.
Looking for 1 more push before getting short.
Stochastic indicator is showing the stock is major over bought zone.
MACD is looking ready for a bearish cross over.
Aiming to get short between 420-430.
A small bearish MACD divergence is forming.
CMG Daily CMG daily chart to go with my monthly analysis. Looks like were heading for the .786 retracement instead of the 0.618. The Bearish crab completes around $398, but it will probably go to a solid $400. The pattern is perfect due to where it is. It coincides with the .786 retracement from it's decline at the $440 level, which is a perfect (aside from .618) bearish retracement. It is a crab that completes at the top of it's most recent run upwards, as well as at the top of it's bullish channel it has been in since December of last year. In order for a more larger bearish move IT MUST REVERSE AT THAT 0.786 LEVEL. Otherwise the pattern is void.
I guess Jeffrey Gundlach was rightKissed 0.618 3 times in a perfect bearish retracement. We either have a bullish AB=CD pattern or a bullish bat. Given that the the 2.0 and 0.886 extensions are so close together in the PRZ it is possible that we tag this area. If not then I guess its a AB=CD. As far as volume analysis goes; first notice the downward sloping volume since the start of the 0.618 retracement. The bigger picture on volume though is the dome shaped rounding top since the start of the trend. Look for a spike in bearish volume quite soon. Like Jeffrey Gundlach said, "I hate the chart, I like the products."
CMG short sale setting upI believe this is just a rally back into resistance here on May 22, 2012 at 404.48 +11.15 or 2.83%.
I will wait until tomorrow to short and I will look for a 410-415 IDEAL ENTRY LEVEL and will look for a 384-380 target.
My stop will be 425-430.
Just giving a heads up early.
Cheers.
