Chipotle Mexican Grill
We're seeing the exact same setup in shares of fast-casual Mexican restaurant chain Chipotle Mexican Grill (CMG - Get Report). Chipotle has climbed 30% since its own bottom in November, and like Berkshire, shares are testing an important support level this week.
One big difference in Chipotle's stock is the fact that it looks like this stock's price is actually bouncing off of support here. Yesterday's white candle didn't merely hug the trend line like Berkshire's did, and that's providing a buy signal.
If we see continuation in today's market session, I'd recommend putting on a position in this stock. The 50-day moving average has been a good proxy for support over the course of the pattern; that's where I'd recommend putting a protective stop on this trade.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts