Shares in fast casual restaurant Chipotle Mexican Grill (CMG) jumped more than 4% in extended trading Wednesday after the burrito maker served up 澳洲幸运5开奖号码历史查询:second quarter results above Wall Street’s expectations, as demand for the chain’s menu items allowed it to avoid lowering prices, helping to sustain 澳洲幸运5开奖号码历史查询:revenue growth.

Below, we take a closer look at the 澳洲幸运5开奖号码历史查询:technicals on Chipotle’s chart and point out important price le𒆙vels to watch out for amid a post-earnings pop.

Chart Sets Stage for Earnings-Driven Bounce

Since forming a 澳洲幸运5开奖号码历史查询:bear trap pattern after setting a record high in June, Chipotle shares have had a correction of around 24% on above-average volume. However, the shares appear to have found buying interest near a trendline linking a February pause in the stock’s longer-term uptrend and the closely aligned 200-day 澳洲幸运5开奖号码历史查询:moving average.

It’s also worth pointing out that the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) recently moved into oversold territory below the closely watched 30 threshold for only the fourth time over the past year, setting the stage for an earnings-driven pop from this key support area.

Monitor These Key Overhead Chart Levels

If Chipotle shares stage a post-earnings recovery, investors should monitor three key levels where the stock may run into overhead 澳洲幸运5开奖号码历史查询:resistance.

The first area to watch sits around $57, a location on the chart where sellers who 澳洲幸运5开奖号码历史查询:bought the dip may be happy to lock in profits near price 澳洲幸运5开奖号码历史查询:consolidation that formed as part of the stock’s trending ꩵmove ꦍbetween October 2023 and June this year.

A close above this level could see a move up to the key $61 level, where the shares would likely face a 澳洲幸运5开奖号码历史查询:confluence of resistance from the downward sloping 50-day MA and a 澳洲幸运5开奖号码历史查询:horizontal line linking a series of price points from late April to early July. This area also roughly lines up with the 50% 澳洲幸运5开奖号码历史查询:Fibonacci retracement level using a grid sꦑtretched from the June high to July low.

Finally, an extended bullish move in the stock could drive a rally to around $65, just 6% below the 澳洲幸运5开奖号码历史查询:all-time high (ATH), near a trendline sitting above a narrow range of 澳洲幸运5开奖号码历史查询:price action between April and May.

Chipotle shares gained 4.4% to $54.04 in after🎶-hours tradi💛ng Wednesday.

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