Chipotle Mexican Grill, Inc. (CMG) has had a lot of media attention in recent years. I don't need to go into all that as an internet search can tell you that in a second or less. I want to focus on the charts where I can see that CMG is testing key support.
In the daily bar chart of CMG, below, we can see that buyers have been defending the $420 area on the chart since May. Tests of that area in June, August and October all survived but the latest test of that support area may not be so lucky. Prices are below the flat 50-day moving average line and below the rising 200-day line.
The daily On-Balance-Volume (OBV) line shows a peak in August with prices and a decline from early November signaling to us that sellers of CMG have become more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has just crossed below the zero line for an outright sell signal. This is not looking good.
In the weekly bar chart of CMG, below, we can see a bearish alignment of the indicators. Prices are below the 40-week moving average line.
The weekly OBV line is pointed down and the MACD oscillator has been in a take profits sell mode since September.
In this Point and Figure chart of CMG, below, a potential downside price target in the $340 area is projected. This would take CMG down to a prior support area.
Bottom-line strategy: The charts and indicators on CMG are telling me that the odds are that support around $420 will be broken and further declines will unfold. Make that order to go!