Chipotle’s stock price (NYSE:CMG) broke key price support recently and this should open up a new wave lower.
But traders should use caution on the short side, as this is a “macro” analysis.
As well Chipotle reports earnings on Tuesday, a catalyst for swift price movement. And considering how oversold it is, it wouldn’t be surprising to see a bounce here.
That said, the “weekly” chart below shows the breakdown in Chipotle’s stock price. This drop offers a longer-term price target of $257.23 (the 23.6 Fibonacci extension level). I simply call Chipotle “burrito” for short. And, in this case, the “burrito” looks to have more downside over the coming weeks.
Chipotle Stock Chart (CMG) with Fibonacci extension price target
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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.