The bearish DailyPlay we chose for Wednesday, Oct 31st is Chipotle (CMG). CMG is part of the Consumer Discretionary Sector (XLY). Over the last month, XLY has experienced a 10.59% move lower and its 1m and 6m trend has turned bearish on 10/10 and recently broke below its $105 support level, which now becomes resistance.
Chipotle’s 1m and 6m trends turned bearish on 10/10 and is recently testing its $460 resistance level which was prior support. With a technical score of 8 (out of 10), CMG is a strong stock that is starting to turn lower.
As a stop loss, if CMG was to trade above $475 for multiple days, this would invalidate our analysis and suggest getting out of the trade.
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