Chipotle Mexican Grill (CMG), is one of my favorite Mexican fast food joints, right here in the Big Apple. I can binge on those Burritos all day long. But that doesn’t mean I love the stock as well. CMG reports its earnings this week (Oct 17th - Thursday), and even though the Fundamentals look compelling, as David Einhorn got killed on CMG betting against them, the charts reflect a completely different picture. CMG got pummeled by the Bears today, in a broad based sell-off, courtesy of Washington Politics. The unusual thing about today’s move on CMG was that it under-performed the market pretty dramatically, closing the day DOWN 1.90 Percent.
I don’t follow the stock as closely as I do others like JPM, GS, AAPL, etc… hence I don’t know what Wall Street is expecting in terms of future earnings guidance. From a strictly technical perspective, we got a very strong Bearish SELL signal on CMG.
Here is the Daily chart of CMG:
I recommend using options to play this move, given the context of Earnings Announcement this week.
Price Target: $400
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