Keep an eye on oversold shares of Chipotle (SYM: CMG).
Now at $53.45, we’d like to see it initially refill its bearish gap at around $56. From there, if it can break above $56 resistance, we’d like to see it retest $62 near term.
Helping, analysts at Wedbush just upgraded the stock to an outperform rating with a price target of $58 a share. Plus, “We don’t think there’s any great reason for its pullback except for general concerns in the economy and the restaurant space overall,” Dan Ahrens, portfolio manager of the AdvisorShares Restaurant exchange-traded fund, told Barron’s. “This could be a good entry point for long-term investors.”
With a good deal of negativity priced into the stock, we do believe it could push higher.
