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Few stocks did better than Chipotle Mexican Grill (NYSE: CMG) in the last 18 months. In a little more than a year, CMG shot from $212 to $442 and was considered among the top stocks of 2011.
The shares have since fallen back to $400, and buyers need to see the stock stabilize. While CMG shares remain in a strong bullish trend with channel support near $370 (blue line below), they are in danger of making a quick decline to that price support in June.
Chipotle needs to take out $406.90 this week to have any chance of rallying higher in June. Those wanting to buy CMG should wait until the stock falls back to channel support (also near the 200-day moving average – black line below) or on a breakout above $406.
