1. In our Aug. 22, 2014 Williams edge stock report we indicated that while Chipotle remained inside a powerful uptrend which was likely to persist for some time, a mid-Sept. 2014 correction and test/attempt at $640/$35 was indicated.
2. More recently (Sept.3) we noted that any daily close below $669 in Chipotle could be sold short for the decline and test/attempt at $640/$35 into mid-September.
3. Chipotle closed below $669 on Sept. 12 and today made a session low of $642.64 coming within approximately 2 points of the $640 downside target (so far). This decline occurred during the week of Sept. 15, confirming with the original forecast for a mid-September test of $640/$35 in Chipotle.
4. Lower prices remain possible. Will update as the market continues to confirm.
Chipotle Mexican Grill CMG:
1. Chipotle Mexican Grill remains inside a very powerful ongoing uptrend.
2. Although the above is likely to persist for some time, there are early indications in Chipotle for a mid-September correction and a subsequent test/attempt at $640/$35. Chipotle is currently trading at $675.
3. Any internal weakness in Chipotle will be pointed out with a view to new short entry as we move closer to mid-September. Will update.