Indications Suggest NYSE:CMG Could Be on the Verge of a Breakout.

Our stock screener has spotted CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:CMG.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall CMG gets a technical rating of 8 out of 10. CMG has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• 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 81% of all other stocks.
• CMG is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 70% of 135 stocks in the same industry.
• In the last month CMG has a been trading in the 55.02 - 61.25 range, which is quite wide. It is currently trading near the high of this range.
• 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.

Our latest full technical report of CMG contains the most current technical analsysis.

How do we evaluate the setup for NYSE:CMG?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple 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 and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 58.65, a Stop Loss order could be placed below this zone.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.