CMG rises to highest close ever
Chipotle Mexican Grill Inc. (CMG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, CMG ended the week 6.68% higher at 921.94 after gaining $8.99 (0.98%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 921.94 marks the highest recorded closing price ever. Closing above Thursday's high at 914.98, the stock confirmed its breakout through the prior session high after trading up to $8.51 above it intraday.
Daily Candlestick Chart (CMG as at Feb 14, 2020):
Friday's trading range has been $14.91 (1.63%), that's slightly below the last trading month's daily average range of $16.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CMG.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 879.52.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Chipotle Mexican. Out of 613 times, CMG closed higher 53.83% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.87% with an average market move of 1.19%.