Shares in fast casual chain Chipotle Mexican Grill (CMG) dropped more than 5% on Monday, giving back a further portion of the impressive gains the stock registered after the burrito maker announced a 澳洲幸运5官方开奖结果体彩网:50-for-1 stock split in March, as investors continue to 澳洲幸运5官方开奖结果体彩网:take profits off the table.

Below, we take a closer look at the 澳洲幸运5官方开奖结果体彩网:technicals on Chipotle’s chart while also identifying important levels to watch out for amid further shar⛦e price weakness.

Chipotle Stock Confirms Bull Trap 

Chipotle shares broke out from a six-week period of 澳洲幸运5官方开奖结果体彩网:consolidation in mid-June to reach a new record high but have promptly reversed lower since that time to confirm a 澳洲幸运5官方开奖结果体彩网:bull trap, a chart pattern that "traps" investors who initiated long positions on the breako𓄧ut signal and subsequently generates losses as the price reverses. 

In another sign of weakening upside momentum, 澳洲幸运5官方开奖结果体彩网:technical divergence appeared on the chart last month when the stock climbed to a new high, but the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a comparatively lower high.

Indeed, the restaurant chain’s shares closed below key support at $61.50 on Monday on above-average volume, raising the possibility for fur💜ther declines in the weeks ahead.

Monitor These Chart Levels Amid Further Selling

Amid ongoing weakness in Chipotle's stock, investors should watch four key areas where the shares may find buying interest.

Firstly, it’s worth monitoring the $56 level, an area on the chart where the price may encounter support upon a fill of the March 19 pre-澳洲幸运5官方开奖结果体彩网:breakaway gap, the day before the company's shares jumped more than 3% following the the stock ♛split announcemཧent.

Bulls’ failure to hold this level could see a lower gap filled at around $50, which also currently sits just below the rising 澳洲幸运5官方开奖结果体彩网:200-day moving average.

Further downside could spark a decline to around $47, a region where buyers may perceive value near a December 2023 澳洲幸运5官方开奖结果体彩网:swing high.

Finally, a more significant 澳洲幸运5官方开奖结果体彩网:correction could see the shares revisit $43, where they would likely attract bargain hunting near a trendline stretching back t𝓰o June last year.

When monitoring the support levels outlined above, investors should seek confirmation from other 澳洲幸运5官方开奖结果体彩网:technical indicators, such as an overbought RSI reading or a bullish 澳洲幸运5官方开奖结果体彩网:candlestick pattern, that provide additional clues the current 澳洲幸运5官方开奖结果体彩网:retracement in the stock might be coming to an end.

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