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CMG stock price shows huge gap-up post bullish breakout. - 2
The rise is attributed to the recently released earnings report. - 3
The breakout marks a new all-time high for Chipotle Mexican Grill Inc.
Chipotle Mexican Grill Inc. observes a bullish breakout after the Mexican restaurant chain reported the earnings for the period ending in March, 2023. The burrito chain beat analysts’ estimates for the first quarter profit and sales, making CMG stock price soar high. The price rally marks a new all-time high for the restaurant chain at $2071.00, leveraging positive disclosures in the reports.
Chipotle Mexican Grill Inc. Out of Angst?
The Chipotle Mexican Grill Inc. foodborne illness epidemic are some of the most high-profile food safety cases in the food-chain history. The burrito chain agreed to pay a $25 million fine to resolve criminal charges regarding the restaurant’s role in a series of food safety cases from 2015 to 2018 resulting in over 1,100 people falling ill. CMG stock price has had a massive bull run since Brain Niccol was appointed as chief executive in 2018. The timeline coincides with the Chipotle Mexican Grill Inc. battling the food poisoning outbreaks that punctured sales.
The recent reports rolled out by Chipotle Mexican Grill Inc. painted an optimistic image for the restaurant chain. The reports revealed reported earnings to surpass the estimates by 17.27%. The estimate of $8.954 varied from the reported $10.50, marking a profit. The reported revenue of $2.364 billion differed from the estimate of $2.34 billion by 1.24%. A positive revenue report sets a premise for the company to be out of agony and is ready to grow.
CMG Stock Price Analysis
CMG stock price marked an upside gap immediately after the reports were released. The upside gap marked a new all-time high and established a bullish outlook for Chipotle Mexican Grill Inc. The trading volume noted a soaring buyer interest for the chain as the volume matches the price rocket. The Bollinger Bands diverge wide to display a highly volatile market for CMG stock price.
The current price action takes place above the EMA ribbon indicating a bullish momentum. The MACD forms a wide bullish split and records tall buyer bars in the region above the zero-histogram mark. The RSI shoots to the overbought zone to mirror the overwhelmed buyers present in the market. The hyper-bullish indicators suggest CMG stock price may attempt to correct the gap up soon before another rally.
Conclusion
Chipotle Mexican Grill Inc. released its revenue reports for the first quarter and disclosed a profitable operation result. The reports were an indication for the stakeholders regarding the cessation of the misery due to the catastrophe of the food safety cases. The recent bullish breakout in CMG stock price can help the burrito chain start afresh and expand in the future.
Technical levels
Support levels: $1918.00 and $1812.90
Resistance levels: $2160.20 and $2280.75
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/05/01/cmg-stock-price-chipotle-mexican-grill-inc-marks-massive-gap-up/