Chipotle Mexican Grill, Inc. (CMG)

Purchase Info

Stock Price History

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Our View

Chipotle Mexican Grill is a popular Mexican fast casual restaurant chain. It has stores in the US, UK, Canada, Germany, and France. The company has a strong brand, extensive presence in its primary market, and benefits from customer stickiness through its rewards/loyalty program. Chipotle also has perfected the “fast casual” service with a simplified menu and on-the-go food delivery. In a post-COVID world, Chipotle’s affordability, convenience, and assembly line-like efficiency bodes well for longer-term growth prospects.

The 10-year monthly chart for Chipotle shows short uptrends in 2011 and 2013-2014 before sideways and downward movement till about 2018. The stock then rose almost 5X. The strong uptrend respected the bottom trendline throughout except during the pandemic-led crash of March 2020. However, the price recovered within a couple of months and shot up before finding resistance at the $1580 level. It eventually broke out of that level in July 2021 and peaked at $1950 before pulling back. The pullback has seen the price drop close to the $1580 level, a historical resistance which is likely to act as a support. A reversal, therefore, seems very likely as the price is near the confluence of the support level and the bottom trendline. A long position can be initiated with a target of $1926 and a stop loss at $1236.

Data Explained

On the video and images above you will see the reason this stock was selected.

You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.

Once it is time to move the original stop loss up you will see an additional image.

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