Bearish DailyPlay for Thursday Dec 29th, 2016 – Chipotle (CMG)
The bearish DailyPlay we chose for Thursday Dec 29th is Chipotle (CMG). CMG is part of the Consumer Discretionary Sector (XLY). Over the last month, XLY has experienced a 0.45% move higher but its 1m trend has turned neutral on 12/22 while breaking below its $83.50 support level.
Chipotle’s 1m and 6m trends turned neutral and bearish on 12/27 while bouncing lower off its $395 resistance level. With a technical score of 2 (out of 10), CMG looks positioned to continue this strong bearish trend lower.
As a stop loss, if CMG was to trade above $395 for multiple days, this would invalidate our analysis and suggest getting out of the trade.