Chipotle Mexican Grill, Inc. (CMG): Key Price Planning Levels To Watch

September 3, 2015 by

technical chart lookCorey Rosenbloom: After a huge price surge from $600 to $760, Chipotle (NYSE:CMG) shares retraced to a critical “Make or Break” daily and weekly chart trade planning level.

From there, shares are compressing into a clearly defined support and resistance range.

Let’s update these levels and note the price pathways going forward for this high-flying stock:

A lengthy positive momentum divergence preceded the bullish breakout and immense surge higher in July.

From there, price stalled above the $730 prior high, retracing (reversing) down against $760 per share.

From there, price fell all the way to the critical $690 and $700 per share retracement target.

At this point, we’re closely monitoring the $690 clear support – as drawn – for a possible breakdown bearish reversal or else the $730 key resistance zone for a bullish impulse play back to the $760 highs.

In between these levels, price is “trapped” or compressed between the 20 and 50 day EMAs.

The 20 day EMA overlaps the $721 per share level; the 50 day EMA (blue) trades at $702 per share.

If not already positioned, look for price to move beyond these levels in a breakout or impulsive play.

Here’s the bigger picture of the powerful trend – and key support level – on the Weekly Chart:

Even beyond the impressive $600.00 to $760.00 2015 power-rally, Chipotle (CMG) shares have surged from the 2012 October low near $250 to peak (so far) in 2015 above $750 per share.

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