Customers and investors alike are flocking back to Chipotle Mexican Grill Inc. (CMG) , Jim Cramer told viewers of his Mad Money program Thursday night. After the latest quarter's 6.1% jump in same-store sales, you should be too. The restaurant is one thing but the stock price may be another thing. Let's check the charts and indicators this afternoon to see if investors are still hungry for more CMG.
In this daily bar chart of CMG, below, we can see that prices broke out on the upside of a long sideways consolidation pattern. CMG is above the rising 50-day moving average line and the bullish 200-day line. The daily On-Balance-Volume (OBV) line shows a rise for the past year telling us that buyers of CMG have been more aggressive even during the long consolidation pattern. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration.
In this weekly bar chart of CMG, below, we looked back four years to get a better look at the potential base pattern. The height of this base projected upwards from the "neckline" gives us a $750 price target. Pretty good. CMG is trading above the rising 40-week moving average line. The weekly OBV line has been bullish the past year and the MACD oscillator gave a fresh buy signal recently.
In this Point and Figure chart of CMG, below, we can see the recent rally and breakout. This chart yields an upside price target of $852.
Bottom line strategy: try to buy a dip under $575 and risk a close below $525. Targets start at $750 and go up. Deep pockets needed.