For his first Executive Decision segment of "Mad Money" Tuesday, Jim Cramer spoke with Jack Hartung, CFO of Chipotle Mexican Grill Inc. (CMG) , the restaurant chain that just posted an earnings beat of 13 cents a share and saw same-store sales rise 13.4%.
Hartung said Chipotle's loyalty program is going strong but is only just getting started and the company expects it to become even more popular. Chipotle is doubling down on pickup, delivery and even drive-up windows. Also, its 5,500-store target is only just the beginning as it experiments with new locations and different store formats.
Let's see if there are any technical targets on the charts.
In this daily bar chart of CMG, below, we can see that prices have been in an impressive uptrend the past year. CMG is firmly above the rising 50-day moving average line and above the rising 200-day moving average line. It looks like the trading volume has diminished since late October and older chart watchers such as me find that unsettling as we like to see volume expand on rallies. The daily On-Balance-Volume (OBV) line has risen since November, but very slowly. The Moving Average Convergence Divergence (MACD) oscillator has rolled over in January and is in a take profits sell mode.
In this weekly bar chart of CMG, below, we can see that the price of the stock has more than tripled in just the past two years. Prices are above the rising 40-week moving average line. The weekly OBV line has been positive since early 2018 and the MACD oscillator recently turned up to a new go long signal on this longer time frame.
In this daily Point and Figure chart of CMG, below, we can see a potential price target of around $1,200. A trade at $895.96 will refresh the uptrend.
Bottom line strategy: If you are long CMG, great, but consider raising your sell stop to a close below $840. Our next potential price targets are $1,000 and then $1,200.