Chipotle (CMG) has been bearish heading into 2016 due to several cases of e.coli and other food-bourne illness in the restaurant. So far this year, price action continued to be bearish but has also flattened out a bit as we can see in the daily chart. CMG Daily Chart 9/8(click to enlarge)Lower lows, lower highs:- There was a low at 400 at the beginning of the year, but price pushed lower in June to 385.50.- After an ABC correction from January to March, we saw price highs falling lower and lower into July.Double top:- The lower lows and lower highs scenario is about to break.- Price threatened 385.50 again in August, but bounced up from this previous low. - Now, price is almost back at the July high and resistance pivot of 444.15. - Essentially, price action flattened and formed a double bottom.Upside:- If we respect the prevailing downtrend and momentum, we should limit the bullish outlook coming out of the potential double bottom.- There is a pivot at 483, and we can use this as a conservative target. - A slightly more aggressive target is the psychological level of 500. - Again, because of the established bearish mode, we should probably not expect price to return to 543. Now if it does, we should monitor for a break above 550, because that would mean CMG has turned the corner. Bill Ackman has a role in the latest rally. Here's an article that has a bearish bias despite and even due to the activist investor's involvement: Chipotle: Now we Know