Did you buy this dip of Chipotle (CMG)? (August 06, 2012)
CMG
I’m Dan Fitzpatrick at StockMarketMentor.com on Monday, August 6th. Let’s take a quick look at Chipotle ( $CMG Chipotle Mexican Grill, Inc. ). If this was all the bounce this stock got Thursday and Friday of last week, on really sub par volume; this is not a stock that you want to buy. Now a lot of folks bought this dip, okay well it’s done going down, but this is a stock that’s got some serious downside momentum; look here on the weekly chart, you can see a major breakdown and the stock is now down knocking at the door of these levels. With these levels we’re clear back at last year, they don’t really act like much of a floor. So what is the floor? I’m looking here, I don’t see one; no it’s not down here but the bottom line is we don’t know how low this thing can go; can it fall to $200.00? Well sure, it was there a couple years ago, maybe the growth is over, I don’t know I like Chipotle’s ( $CMG Chipotle Mexican Grill, Inc. ) stuff, but I know this, I wouldn’t be buying the stock right now and if you disagree with me that’s fine it takes two opposing opinions to make a trade; but at least keep a stop below last week’s intraday low of $277.00. If the stock falls below $277.00 then this is the time frame that applies and that’s leading to nowhere good, okay. All right members get over to the Strategy Session; I’ve got several stocks to cover that are better in my view, that are pretty much actionable so get over there now. Free Chart