Shares of Chipotle (CMG) continues to slide. Last week, it broke below a critical range support at 385.50. This opened up new lows on the year.
Key technical levels:
- As CMG digs lower, let's take a look at the upcoming technical levels that should be monitored for support.
- The first is around 350. We can see that this is a support/resistance pivot going back to 2011. We could see some stickiness here.
- Let's say we get some buying. If price holds under 400, the bearish outlook would still be intact .
- The 300 psychological level could also be sticky.
- However, a more aggressive bearish outlook has the 275-276 pivot area, then the 240 area (down to 231), as the next key levels.
- With the bearish trend in full swing, it would not be surprising to see CMG fall to 275. I think 240 might be a bit too aggressive at the moment.