CMG pushes through Thursday's high
Chipotle Mexican Grill Inc. (CMG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CMG ended the week 8.64% higher at 1055.70 after surging $28.99 (2.82%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 1055.70 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 1038.13, the market confirmed its breakout through the prior session high after trading up to $19.32 above it intraday.
Daily Candlestick Chart (CMG as at May 22, 2020):
Friday's trading range has been $37.50 (3.65%), that's above the last trading month's daily average range of $28.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CMG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 15th, CMG gained 2.76% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 930.66 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Chipotle Mexican. Out of 197 times, CMG closed higher 52.28% 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 65.48% with an average market move of 2.13%.