Buy the Burrito

• Posted by Greg Harmon
• on May 2nd, 2013

This is an excellent time to buy a burrito. In fact go further and buy the Chipotle Mexican Grill, $CMG, stock. The monthly chart below shows several reasons to jump in now. First the price moved back above the 20 month Simple Moving Average (SMA) in April. It ha not been above that since July 2012, and the last time that is crossed it going higher in July 2009 it trended higher for nearly 3 years. Next there is that spooky Elliott Wave thing. Moving back higher in November, it completed Wave (IV) and it is moving

Chipotle Mexican Grill, $CMG

higher toward completion of Wave (V). A standard measure would be a 61.8% move of Wave (III) or $250, which would take it to 484. The Relative Strength Index (RSI) is also in bullish territory and rising with a Moving Average Convergence Divergence indicator (MACD) turning back higher and about to cross to positive. Not enough to convince you? Well I did get these coupons in the mail today too.

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