July 23 Chart of the Day - Chipotle
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
According to published reports, Chipotle Mexican Grill (CMG) is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023 and nearly 3,440 stores ending the same period.
The company reports earnings Wednesday July 24 after market close so we wanted to review their chart from a price action technical analysis perspective.
We have featured over 250 Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its split adjusted $69.26 all time high (ATH) last month price is falling dramatically in "free fall like mode" searching for a bottom.
The bulls have yet to step in with any lasting conviction.
Weekly Chart
On the weekly chart we can see with much more clarity the dramatic fall from ATHs and where price briefly shot up near $70 then reversed starting a downward cycle.
Trading around $52.55 earlier today price has been attempting to find a definitive bottom but has yet to prove it so far by not producing a series of higher highs and higher lows.
The market is implying about a $4.50 move in either direction as marked on the weekly chart by this Friday July 26. Share price has risen during the week of earnings 4 of the last 8 quarters.
Could earnings later this week be the catalyst that definitively sets the bottom to raise price firmly back to the upside or will it continue falling?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
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