Market Overview

How High Can Chipotle Go?

Share:

In a recent video, JC Parets, Market Technician and Founder of Eagle Bay Capital, analyzed Chipotle Mexican Grill, Inc. (NYSE: CMG) and a couple of related charts following the company’s earnings report.

Parets discussed why $715 was “a key target at the beginning of the year, and really throughout the fourth quarter.” The last major correction the stock saw took place early last year, between March and April, he explained. Prices went from above $600 to under $500 very quickly at the time.

Once the stock surpassed that level, his target was set at $715 based on the 161.8 percent extension of the correction.

The target was achieved earlier in 2015 and since then, the stock has corrected nicely, Parets added.

Parets continued, “We’ve got a very clean downtrend line [in blue] from those highs in February, and we recently broke out of that over the last week, especially with earnings last night, and we’re back to that $715, $716 levels (…) So, this is critical, critical resistance.”

In his view, this is a failed breakout -- his next price point to watch is $700.

His conclusion? "Risk management-wise, [there's] no reason to be long if prices are below 700 and aggressive longs can add only if we have cleared this resistance from earlier in the year."

Posted-In: Eagle Bay Capital JC ParetsAnalyst Color Technicals Movers Trading Ideas

 

Related Articles (CMG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NEWCitiUpgrades
BKNGConsumer Edge ResearchInitiates Coverage On2,250.0
EXPEConsumer Edge ResearchInitiates Coverage On100.0
TRIPConsumer Edge ResearchInitiates Coverage On26.0
IAreteInitiates Coverage On39.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Moody's Says Probability Of Puerto Rican Default 'Approaching 100%'

Deutsche Bank Bullish On Biogen: New Data Doesn't Change Probability Of Success For Alzheimer's