Don’t look now, but the Chipotle chart has been strong lately – and all signs point toward higher prices ahead. It’s been quite a turnaround for this fast-casual restaurant concept, which was plagued by endless bad news for a while. Last week’s earnings report was solid, and they offered strong guidance. This first report under their new CEO inspired investors who took the stock up 25% last week.
With such a strong move up, I would have expected some giveback and selling, but that has not been the case here. Chipotle is heavily shorted, and without much selling pressure, the short sellers are in a bind.
Money flow is strong, the RSI is off the charts and the MACD is on a buy signal. With those readings, I would not be surprised to see this name move toward the 450’s before too long.
