Shares in fast casual restaurant chain Chipotle Mexican Grill (CMG) will likely remain in focus Friday following a 6.2% decline on Thursday, their largest daily percentage loss since last July. The sell-off comes ahead of a 澳洲幸运5官方开奖结果体彩网:50-for-1 stock split that takes effect next Wednesday, an event that will make the company's shares 澳洲幸运5官方开奖结果体彩网:more accessible to a wider range of investors.

Given that the stock has gained more than 40% since the start of the year and has more than doubled since the start of 2023, 澳洲幸运5官方开奖结果体彩网:institutional investors may be booking some profits ahead of the split. Below, we use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important levels to watch out for during a retracement.

Chart Signals Weakening Uptrend Momentum

Since finding support around the 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA) in October last year, CMG shares have continued to trend sharply higher, with buyers stepping in to buy 澳洲幸运5官方开奖结果体彩网:pullbacks to the 50-day MA. 

Although the price broke above a period of consolidation to a new record high earlier this week, Thursday was a 澳洲幸运5官方开奖结果体彩网:wide-ranging day and the close below the breakout point on the highest 澳洲幸运5官方开奖结果体彩网:trading volume since late March indicates a potential 澳洲幸运5官方开奖结果体彩网:bull trap. Such a move꧂ "traps" traders or investors who acted on th📖e breakout and generates losses on resulting long positions. 

Moreover, as the stock made a higher high this week, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a lower high, creating a bearish 澳洲幸运5官方开奖结果体彩网:divergence, a signal that suggests weakening momentum.

Monitor These Fibonacci Levels During Pullbacks

To determine where the stock may find buying support, we can use the 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement tool stretched from the October low to this week’s 澳洲幸运5官方开奖结果体彩网:all-time high (ATH). However, as with all technical indicators, investors should confirm siꦺgnals with other chart analysis to identify high probability areas.

Firstly, the shares may find buying interest at the 23.6% 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement level at $3,066, a region that also aligns with last month’s 澳洲幸运5官方开奖结果体彩网:swing low. The 38.2% Fib level at $2,821 could mark another key support area, given it closely aligns with the March 19 pre-breakout gap, the day prior to the burrito maker’s shares jumping 3.5% after announcing its ▨stock split.

Finally, It’s also worth keeping an eye on the key 50% Fib retracement level at $2,622, an area on the chart that cuts through a series of 澳洲幸运5官方开奖结果体彩网:price action in February and March.

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As of the date this article was written, the author does not own any of the above securities.