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Actionable news in CMG: CHIPOTLE MEXICAN GRILL Inc,

Will Chipotle (CMG) Fall to New Lows on the year?

Chipotle (CMG) has flattened the sharp bearish trend it was in entering the year. However, it has not been able to find a price bottom to rally from. Instead the bearish bias is still very much alive, at least from the technical perspective.

CMG Daily Chart 10/17

(click to enlarge)

Bearish continuation and consolidation:
- After the ABC correction essentially in Q1 of 2016, CMG fell to a new low on the year at 385.50 before finding support again.
- Here CMG started to form a consolidation range above that 385.50 support and below resistance at 444.15.
- Price is now heading back towards the 385.50 support.
- Note that the range has completed the structure "abcde", which suggests a completed consolidation pattern based on Elliott Wave Principles.
- Basically, what I am suggesting is that we do not treat 385.50 with anticipation of support outside of the very near-term.
- The height of the current range is about 60 points (384 - 444, rounded off because this is not meant to be precise but a guideline for projection). 358.50-60 = 298. Based on a breakout projection, we should anticipate a dip towards 300 if price does break below 385.50.