Shares of Chipotle Mexican Grill (CMG) is in a technical "no man's land" as I look at the charts and indicators. Let's review the charts ahead of the quarterly earnings release this Tuesday evening.
In this daily bar chart of CMG, below, we can see that prices are currently trading below the 50-day moving average line and above the 200-day moving average line. The trading volume shows a modest increase in turnover from late August and the On-Balance-Volume (OBV) line shows an uneven rise from June. The Moving Average Convergence Divergence (MACD) oscillator has just crossed to the upside for a cover shorts buy signal.
In this weekly Japanese candlestick chart of CMG, below, we can see both upper shadows and lower shadows on the most recent candle patterns. The 40-week moving average line is bottoming and prices are trading above it. The OBV line has been in a slow decline from September 2021. The MACD oscillator has turned to the downside for a take profit sell signal.
In this daily Point and Figure chart of CMG, below, we can see a potential upside price target in the $1,864 area. A trade at $1.595.62 or higher is needed to refresh the uptrend. A trade at $1,488 or lower could weaken the picture.
In this weekly Point and Figure chart of CMG, below, we can see a potential downside price target in the $1,128 area.
Bottom line strategy: I have no special knowledge of what CMG will be telling shareholders and analysts this evening but the chart suggests a cautious stance.
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