Wednesday, February 21, 2007

Chipotle Mexican Grill

Here is a chart of CMG from around last May till the end of July. Notice the incredible upward surge in the days leading to earnings with a huge gap up from 59 to 66 on earnings day. CMG tops at 67.77 which has to date not been bettered and than fade's down to 48 by the middle of July. Now look at this chart . Again a nice upward surge in the days leading up to earnings followed by a big gap up and than a fade . The worrying point to note is the failure to break above the previous peak at 67.77. Could CMG be a good short here ?

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