With little in the way of resistance, we saw buyers take a breather from the torrential bull run of Chipotle Mexican Grill (CMG) . The June and July surge was terrific, but the post-earnings move was stellar.
Eventually they exhaust themselves and the stock goes into correction mode, though.
The recent pullback to the lower Bollinger band might be it; the stock really moved up sharply Wednesday on good volume, which has been elevated of late. Though money flow is bearish, it might have peaked.
We won't consider that bullish until a cross over zero.
The Relative Strength Index (RSI) is weaker, as we'd expect during a correction in a high-beta name, but the cloud is strong as is the long-term trend.
We could see CMG make a run to $2,000 before earnings hit in October; take a fresh look here.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.