In our April 27 review of the charts of Chipotle Mexican Grill ( CMG) , we gave a bearish outlook for prices and recommended, "In the short-run shares of CMG could bounce higher but the overall condition of the charts and indicators suggest further sideways price action with the risk of longer-term declines. Avoid the long side for now."
We used a Point and Figure chart with a $1,231 price target in our report. With prices just about at this target another review of the charts is in order. 
In this daily bar chart of CMG, below, we can see that prices have been under selling pressure since September. Recovery rallies have become weaker and shorter in duration. Prices are poised to break the May lows. The slopes of the 50-day and 200-day moving averages are negative.
The daily On-Balance-Volume (OBV) line is bearish as sellers of CMG have been more aggressive with heavier volume being traded on days when CMG has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish and poised for a new downside crossover.
In this weekly Japanese candlestick chart of CMG, below, we can see that traders have at times defended the $1,200 area but this time they may not be there. Prices are below the declining 40-week moving average line. The lower shadows in May on CMG are not offering support today. The weekly OBV line is pointed lower and so is the MACD oscillator.
In this daily Point and Figure chart of CMG, below, we can see that prices are testing the recent lows. A downside price target in the $1,081 area is being projected.
In this weekly Point and Figure chart of CMG, below, we can see a tentative downside price target in the $851 area.
Bottom line strategy: Get some food at CMG to go but continue to avoid the long side of the stock.
(Chipotle Mexican Grill is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells CMG? Learn more now.)
