Chipotle Mexican Grill Inc (CMG)

[DowDeva]

Ashy,

if you put on a 30 minute chart with price bars or candles, you'll see big long price bars on the decline down on 5/26 before it found support on 5/27. Those kind of big candles most people get all excited about and think price is going to continue in the same direction. They get all excited and call them 3 or 5 black crows or white soldiers in candlestick charting.

The truth is, on an intraday chart particularly, they usually get 'traded out', i.e., price will retrace to test them BEFORE price potentially goes down in the same direction (or if they even do). That is exactly what happened here with CMG.

However, CMG couldn't make it all the way back up to the top of the first huge candle down on it's retracement to 1086, but only made it partway.

That's important.

There was another big price bar on the 30 minute on 6/1 going up at 9:30. That bar looks likely to be traded out and there is also a gap on 6/29 at 1014. Gaps also act as magnets.

The volume is awful here and that works both ways, up and down. There is volume support around 1024 and 1000, plus or minus, and that should act as a magnet too.

Actually, the real volume support is around 900 or so.

AND THE CEO SOLD ALMOST ALL HIS SHARES!

I have no idea what will happen. But I like these odds.