A Simmering Short Play in Chipotle
Today I'm going to give you a relatively low-risk sell setup in Chipotle (CMG). The case for this short setup is backed up by the fact that price remains below the 200-day and 50-day simple moving averages, along with the stock's bearish pattern of lower lows and lower highs. I'm also looking at a symmetry setup that has been defined by taking many of the prior rally swings and which projects 100% of those from the most recent low from Aug. 2.Chipotle (CMG) -- Daily Source: Dynamic Trader View Chart »
Chipotle took out some of the lower resistance I saw earlier this week, and it is now current respecting the resistance that was left at the $306.47-to-$312.46 area. If the price continues to hold below this key zone, I want to take the sell triggers and look for the initial downside target in this stock at the $269.09 area. The risk can be defined either above the high end of the price cluster zone, or above the high made prior to your sell trigger. ...258 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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