Check out Chipotle Mexican Grill (CMG). Is this "touch and go" ready to fly?

I want to take a quick look at Chipotle Mexican Grill ( NYSE:CMG ). The thing about this stock is your analysis; at least mine has to start at the weekly. I want to see what’s happening here, so I guess you could say, “Well it’s a lower high, that’s a bad thing.” Well yes it is if you bought the last one. But if we just kind of stretch this out and see okay, this was one uptrend, pretty nice. Now we got a pullback, a retracement. I’m looking at this as really just starting a brand new uptrend, I have absolutely no idea whether the stock’s going to continue up there, and anybody tells you that they do, anybody who tells you that they do is a liar. You can get somebody guessing with absolute conviction, but nobody really knows for sure. If they did it wouldn’t be called speculation, it wouldn’t be called trading, it would be called winning. So we don’t know this; what we’re trying to do is gauge our risk.

Now as I look at this I see the middle Bollinger Band, which is the red line here, that’s the mean, in between the upper and the lower Bollinger Band, I also see the forty-week or 200-day moving average. If we just look at corrections, we see here the price has been consistently above the 200-day moving average. Here, during correction mode, it was consistently below the 200-day moving average, even dragging this thing from an uptrend to a downtrend. Well now we’re back up on an uptrend here with the 200-day moving average and I’m looking at this as just a nice little, what I call a touch and go, for all you pilots you know what I’m talking about. The stock on the daily chart, well above the 200-day moving average, but you can see it got over extended from the fifty and now it’s just coming in for a landing here, right about here. So I’m looking at this series of lower highs and a couple of flat lows and actually this is a little bit higher than that. I’m looking at this as a stock that has a potential break out here.

I would just suggest drawing the line here; we can look at the last high, which was 372.66. So you can set your price alert at, call it 370.00, that way you’re attention is drawn to it, because if the stock starts popping out above this last high I think you’re going to see this stock attack 400.00 under the technical theory that this pullback, this retracement of the rally, after the retracement has run its course. Now we’re going to continue moving on from here. So check that out. Also, if the stock falls back to our support here that’s a good buy too; either way I would suggest buying this stock. I just think that while it’s kind of drifting up, but still in the middle of no man’s land, then don’t be in there, just wait for a pullback or a breakout to buy.