Here’s your trade on Chipotle Mexican Grill (CMG). (July 05, 2019)
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CMG, Chipotle ( NYSE: CMG ). I drew this trendline here a while back and my alert triggered today. I took a small position in it today; I think this stock is poised for a breakout. The way that it traded today it kind of flirted right with $740.00. I think that if the stock starts trading above 740.00 we could get another 20 points pretty easily. If we look at the weekly chart you can see that the stock has, actually, a ways that it can go, like, blue sky.
This is a heck of a turnaround from where it was back in 2018. I don’t know if you remember, I forget what the deal is, this is like Ice Juice in Billions. Personally, I think people were planting E.coli and everything else in the food and it really drove the price down. That has kind of gone away and now the stock is back up, really, at all-time highs. I think if this stock breaks out above 740.00 not only are you going to get a nice move to 750.00 or 760.00 but the way I look at it is this could go up another 150 points or so.
So what I would be doing is this: I would buy a little stock right now, you need to make sure there is good volume on it, keep a tight stop on it. I wouldn’t even take the stop all the way down to the 50-day moving average. We are not buying it right here because we think the stock can pull back to the 50. In fact, we are buying it right here because we think it WON’T pull back to the 50. So instead you just keep a stop below Tuesday’s intraday low of 717.24; you keep your stop right, we’ll say, at 716.00, 715.00, something like that. That is not a very wide stop, you are not risking much money but in return you are getting on early. If the stock starts breaking up, say, above 750.00, that’s when you add to this position.
That’s the way I am trading this and that’s the way I want you to trade it.
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