Watch These Chipotle Price Levels as Stock Jumps After Strong Earnings Report

Shares successful accelerated casual edifice Chipotle Mexican Grill (CMG) jumped much than 4% successful extended trading Wednesday aft nan burrito shaper served up second 4th results supra Wall Street’s expectations, arsenic request for nan chain’s paper items allowed it to debar lowering prices, helping to prolong revenue growth.

Below, we return a person look astatine nan technicals connected Chipotle’s floor plan and constituent retired important value levels to watch retired for amid a post-earnings pop.

Chart Sets Stage for Earnings-Driven Bounce

Since forming a bear trap shape aft mounting a grounds precocious successful June, Chipotle shares person had a correction of astir 24% connected above-average volume. However, nan shares look to person recovered buying liking adjacent a trendline linking a February region successful nan stock’s longer-term uptrend and nan intimately aligned 200-day moving average.

It’s besides worthy pointing retired that nan relative spot scale (RSI) precocious moved into oversold territory beneath nan intimately watched 30 period for only nan 4th clip complete nan past year, mounting nan shape for an earnings-driven popular from this cardinal support area.

Monitor These Key Overhead Chart Levels

If Chipotle shares shape a post-earnings recovery, investors should show 3 cardinal levels wherever nan banal whitethorn tally into overhead resistance.

The first area to watch sits astir $57, a location connected nan floor plan wherever sellers who bought nan dip whitethorn beryllium happy to fastener successful profits adjacent value consolidation that formed arsenic portion of nan stock’s trending move betwixt October 2023 and June this year.

A adjacent supra this level could spot a move up to nan cardinal $61 level, wherever nan shares would apt look a confluence of guidance from nan downward sloping 50-day MA and a horizontal line linking a bid of value points from precocious April to early July. This area besides astir lines up pinch nan 50% Fibonacci retracement level utilizing a grid stretched from nan June precocious to July low.

Finally, an extended bullish move successful nan banal could thrust a rally to astir $65, conscionable 6% beneath nan all-time precocious (ATH), adjacent a trendline sitting supra a constrictive scope of price action betwixt April and May.

Chipotle shares gained 4.4% to $54.04 successful after-hours trading Wednesday.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.