CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) Reveals Intriguing Technical Aspects. Here's What You Need to Know.

Our stock screener has flagged CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:CMG for potential movement.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall CMG gets a technical rating of 10 out of 10. In the last year, CMG was one of the better performers in the market. There are positive signs in the very recent evolution, but the medium term picture is slightly mixed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, CMG did better than 87% of all other stocks. We also observe that the gains produced by CMG over the past year are nicely spread over this period.
• CMG is part of the Hotels, Restaurants & Leisure industry. There are 135 other stocks in this industry. CMG outperforms 79% of them.
• CMG is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• CMG is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so CMG is lagging the market.

Check the latest full technical report of CMG for a complete technical analysis.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:CMG is 8:

CMG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 58.50. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 57.69, a Stop Loss order could be placed below this zone.

Trading setups like NYSE:CMG

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:CMG and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.