The Burrito Cuts Both Ways


While market pundits espouse their newfound lowered price targets for Apple, as I pointed out last evening the long-term technical picture is not as bearish when you are using the proper scale. However, turning to another momentum favorite off the 2009 lows, 12631 member @GreyPoopon noted this morning that Chipotle Mexican Grill was down dramatically before the bell.

Despite an intraday bounce, as you can see on the Logarithmic Scaled monthly chart below (which is appropriate to use here because of the rapid appreciation by the stock in a relatively short period of time) the stock could only now be getting started in going down the other side of the mountain. The top purple line is the $210 area and, given the heavy selling volume, I would not be surprised to see David Einhorn’s bearish thesis be proven true. The major long-term breakout level from 2010 is down around $150, and a test of that would not surprise me either.


One Response to “The Burrito Cuts Both Ways”

  1. […] Chipotle Mexican Grill ($CMG) continues to disappoint.  (CNNMoney, chessNwine) […]

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