Swing Trade Idea (CMG) – September 28, 2023
Our bearish trade for Thursday, September 28th is Chipotle Mexican Grill (CMG). CMG is part of the Consumer Discretionary Sector, which has performed at -4.21% over the last month, with CMG performing at -4.91% over the same period.
CMG is in a downtrend since it failed to break above $2,000. It recently broke below support at $1,850 which indicates that further downside can be expected. CMG is following the general trend of its sector which is also in a strong downtrend.
As a close, if CMG were to trade above $1,875 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $103.30 Debit.