The USD 633.5 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
Analysts are mainly on the “buy” side and the stock has a +16% potential to reach the consensus average target price. The security recently dropped briskly because investors over-reacted on the "missed expectations" sales.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 665.1, shows. Nevertheless, the stock seems being oversold, near its significant USD 633.5 support in daily data, due to its 7 % down on last trading sessions. This level might stop the short term slumping and initiate a technical rebound.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Chipotle Mexican Grill in a good timing. A first target could be the USD 687.3 pivot point. Investors might place a stop loss order at USD 621 in order to avoid important losses.
Chipotle Mexican Grill Inc. specializes in operating casual fast food businesses.
At the end of 2023, the group had 3,437 restaurants located mainly in the United States (3,371).