Any time a stock within a healthy uptrend provides us with a deeper downside correction, I have to look at it as a potential opportunity. Chipotle (CMG) is one of these stocks. It had previously become overextended on the upside, so I'd basically taken it off my radar. But now it's showing me something I like. Let's start by looking at a weekly chart, so you'll understand what's appealing.Chipotle (CMG) -- Weekly Source: Dynamic Trader View Chart »
Since Chipotle made its last major low in November 2008, some of the largest downside corrections within the uptrend came in between $39.77 and $65.79. I've illustrated this on the weekly chart. Just using the "symmetry" projections, or "measured moves" of these prior declines, there were two areas left for possible support that came in between $392.21 and $394.46 and from $376.61 to $381.01. Note that, on the daily chart, I will include the other Fibonacci price relationships that overlap these projections....591 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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