Chipotle (CMG) is warming up to a nice spot.
After a sturdy move up in the summer, Chipotle has been in decline with the market over the past couple of weeks. Not to fear, though, the stock has simply pulled back to a strong support area (blue, chaikin).
That daily chart is showing good relative strength and money flow as the stock pulls back towards the 50-day moving average. This has been a reliable spot for buyers to pick up shares.
On the weekly (trendspider) chart, which can be seen in more detail here
, Chipotle is at support, too, with the stop-and-reverse, or SAR, still on a buy signal. Also, the relative strength index, or RSI, is correcting, but with higher-highs and higher-lows on the price chart, there is more upside to go.
This pullback may be a nice area to add this name for AAP subscribers. Volume trends are turning positive, earnings are out in a month.