Chipotle Mexican Grill Rally Baffles Wall Street For Now
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Chipotle Mexican Grill, Inc. (NYSE: CMG) shares are trading higher by $25.00 (3.9 percent) at $676.72. A Chipotle spokesperson told Benzinga through an email there was no news to account for the move in share price.
Let's examine the technicals in the issue to try and determine a reason for the explosive move and where the issue may be heading.
Prior to today, it was hovering just above its lows for the recent slide made on April 1 at $644.06, ending Thursday's session at $651.72. It started spiking higher around 7:30 a.m. ET, when it traded $15 higher on light volume. By the opening bell, it was changing hands at $669 level.
After a brief pullback to $665, it has continued to move higher, reaching $680.61 so far in Friday's session. That represents its highest level since it peaked at $683.13 on March 25.
With a low short float interest of 2.79 percent, the rally cannot be attributed to this being a massive short-covering rally. Instead, investors may need to wait for a positive mention in Barron's over the weekend or some favorable news to explain the reason behind Friday's price action.
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