Stock to Sell #3 – Chipotle Mexican Grill (CMG)
Chipotle Mexican Grill (NYSE:CMG) operates more than 1,300 casual Mexican restaurants in the United States and Canada. Same-store sales growth is projected to be 2% in 2013 compared with 6.5% in 2012.
Technically, the stock is in a bear market with immediate resistance at its 20-day moving average (green line) at $265. In October, CMG broke through a quadruple-bottom at $280 on a huge gap with high volume.
It has since bounced to a minor resistance line at $263, but momentum is failing and it is unlikely to successfully challenge the resistance at $280. Sell CMG at the market.
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