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开奖号码历史查询:50-for-1 stock split that takes effect next Wednesday, an event that will make the company's shares 澳洲幸运5开奖号码历史查询: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开奖号码历史查询:institutional investors may be booking some profits ahead of the split. Below, we use 澳洲幸运5开奖号码历史查询: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开奖号码历史查询: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开奖号码历史查询: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开奖号码历史查询:wide-ranging day and the close below the breakout point on the highest 澳洲幸运5开奖号码历史查询:trading volume since late March indicates a potential 澳洲幸运5开奖号码历史查询:bull trap. Such a mov💧e "traps" traders or investors whꦑo acted on the breakout and generates losses on resulting long positions. 

Moreover, as the stock made a higher high this week, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) made a lower high, creating a bearish 澳洲幸运5开奖号码历史查询: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开奖号码历史查询:Fibonacci retracement tool stretched from the October low to this week’s 澳洲幸运5开奖号码历史查询:all-time high (ATH). However, as with all technical indicators, investors should confirm signals 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开奖号码历史查询:Fibonacci retracement level at $3,066, a region that also aligns with last month’s 澳洲幸运5开奖号码历史查询: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开奖号码历史查询:price action in February and March.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

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