New Weekly Bounce Planning Levels for Chipotle CMG

Nov 23, 2015: 11:55 AM CST

Is Chipotle Mexican Grill (CMG) forming a big bounce off weekly support?

Let’s update our CMG Weekly Chart to highlight a key Fibonacci and Price pivot to plan our trading strategy.

First, be sure to view the prior update “Is Chipotle too Volatile to Trade?”  Answer:  Probably.

We’ll start with the Weekly Chart Fibonacci Grid:

For background info on Chipotle (CMG), see the prior “Is Chipotle Too Volatile to Trade?” for a reference.

Since that post on November 2nd, shares were trading near $623.00 per share.

Now, two weeks later, share prices have gapped down toward $530 and bounced-back in today toward $570.

I think you’ll agree that this is a highly volatile, risky stock – but you still may be interested in trading it.

If so, focus on the weekly chart Fibonacci Grid as drawn above.

The key reference points include the current interplay at $558.00 (38.2%) and the downside confluence target near $500.00 per share.

For the remainder of the week, use the $560.00 price level as your bull (above) and bear (beneath) pivot.

The Daily Chart offers little help in terms of guidance:

Because the stock is so volatile, we simply see large down-gaps and trend days lower.

Price shattered all support (and downside target) levels since the August surge and rallied up today from a fresh new 52-week low.

Ride this one on the intraday level – swing traders are getting chopped in both directions.

Nevertheless, focus your attention on the weekly levels in this high-flying, fast dropping name.

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Corey Rosenbloom, CMT
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One Response to “New Weekly Bounce Planning Levels for Chipotle CMG”

  1. Is Chipotle Forming a Big Bounce? Says:

    […] By Corey Rosenbloom […]