A Closer Look at Chipotle’s (CMG) 150%+ Run this Year

Chipotle Mexican Grill (CMG) stock has gone a massive run in 2010 climbing over 100% thus far. The stock’s move offers great tips and reminders on how to choose the big winners that yield such fantastic returns.

Since Chipotle finished 2009 at $88.16 the stock has climbed to a close today of $222.86. This is a return of 152.79% in 10 months.

By applying some technical analysis and taking a closer look at both a daily and weekly multi-year view of Chipotle’s stock chart we can break down the key points that made up the large returns of 2010. Below is both a 3 year weekly chart alongside a 7 month daily chart.

1. CMG breaks down out of a rising channel at $145 which also distinguishes a key top in the stock. The stock would fall more than 10% before posting earnings at #2.

2. CMG breaks its new trend of lower lows after posting another set of very strong earnings. The stock gaps on massive volume to climb back above $145.

3. After a month of trading in a horizontal price channel on lower than average volume CMG makes a key break through $145.50 which was featured as a major buypoint here on the site. This was also a symbolic break as the stock claimed record price highs.

4. CMG trends up in a tight channel over the next nearly two months.

5. CMG posts earnings and once again impresses with fantastic results and guidance. The stock jumps 26% and claims fresh all-time price highs above $200.

6. With some post earnings consolidation CMG breaks again above $215 on increasing volume. The stock closed today at $222.86, up 152.79% from the start of 2010.

More stock chart examples and lessons below.


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