Tight Range Compression Continues and Breakout Awaits for Chipotle CMG
For those awaiting a breakout in Chipotle shares (CMG), the wait may be coming to an end.
Shares currently remain compressed between the 20 and 50 EMAs as traders await a range (and EMA) breakout.
Let’s update our charts and plot the “Breakout Pathways” for trading this stock:
I initially highlighted this “EMA Compression” last week and wanted to provide an update as shares continued the compression.
We’re still awaiting a breakout from this pattern which triggers a bullish breakout above the $665 level (target would extend toward the $700 prior high level) or else a bearish breakdown triggers on a movement down away from the $655 level.
A steep retracement/breakdown lower opens a sell-pathway toward the $600 confluence.
Our intraday chart allows us to zoom-in on the current compression:
Price has formed an intraday (multi-day) Rectangle Range Pattern between the $668 level and $652 support.
Continue watching these levels and the “EMA Compression” boundaries that are squeezing the stock at the moment.
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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