by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
Yesterday, we looked at a Daily Price Chart of Allogene Therapeutics, Inc. noting the stock’s 50–Day EMA was trading above the 100–Day EMA signaling a bullish trend.
Today’s Chart of the Day is for Chipotle Mexican Grill Inc. (NYSE: CMG).
Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2019, it operated 2,580 restaurants in the United States; 39 international Chipotle restaurants; and 3 non–Chipotle restaurants. The company was founded in 1993 and is headquartered in Newport Beach, California.
The Daily Price Chart below shows that CMG has traded in a clear bullish pattern of higher highs and higher lows since late March — around the time that more people started ordering in.
Track the Price Chart from lower left to the upper right…
We can likely look forward to a further advance, since stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way.
These pullbacks present a buying opportunity for us.
Purchasing CMG after a 3 to 5% price pullback has provided a good entry point for the stock during this run and has produced a healthy return.
We’ll keep watching CMG as it tops its previous highs and waiting for price pullbacks.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On May 8th, we highlighted Arcturus Therapeutics Ltd. (NYSE: ARCT), noting that ARCT’s 12/26 MACD line was trading above the 9–Day EMA signaling bullish momentum for the stock.
If you happened to have purchased ARCT shares on that day, you’d already be up 51.02%.
But… if you had purchased the right option contract, you would be up 196.05% in less than two weeks’ time!
That’s the power of options.
Editor, Chart Of The Day