Chipotle (CMG) – Bearish DailyPlay for Wednesday Oct 31st, 2018
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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