Chipotle Chart Is Serving Up Profits

Don’t look now, but the Chipotle chart has been strong lately – and all signs point toward higher prices ahead. It’s been quite a turnaround for this fast-casual restaurant concept, which was plagued by endless bad news for a while. Last week’s earnings report was solid, and they offered strong guidance. This first report under their new CEO inspired investors who took the stock up 25% last week.

Chipotle chart

With such a strong move up, I would have expected some giveback and selling, but that has not been the case here. Chipotle is heavily shorted, and without much selling pressure, the short sellers are in a bind.

Money flow is strong, the RSI is off the charts and the MACD is on a buy signal. With those readings, I would not be surprised to see this name move toward the 450’s before too long.

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Jacob Paterson 4 years ago Member's comment

This is some good news. It was getting to the point where I thought #Chipotle might never recover! $CMG