CMG faces technical resistance at $33.50 and a downward-broken trend line; recent news-driven jump does not confirm breakout or remove danger.

Now let's move on to Chipotle, folks. We have news today that Starbucks may acquire Chipotle, and that the latter is rushing to hire bankers and prepare them to start preparing the necessary paperwork for this process.

With this news of Starbucks' acquisition of Chipotle, look at this huge jump of 6.21%. A great move for the stock, but it hasn't taken Chipotle out of danger yet, and I'm talking here about its return to this parallel channel.

Now let's look back to where this parallel path began . That was in June of 2024. The price has broken this level downwards on a few occasions . Notice what happens when we try to return to the height.

That has now become a level of resistance. Look at that, the price was rejected once, twice, three times. This time the price exceeded the level even further, but in the end it was rejected.

This time too, the price exceeded the level by a lot, but it was ultimately rejected . So, as you can see, the near-term resistance level has already been identified . We have an upward trend line from the pivot point.

The price broke this line downwards as well in " Chipotle".

CMG stock has been falling along this trend line with successive crashes, but perhaps Starbucks is the fuel the stock needs to get back into this parallel path tomorrow. Watch the price around the $33.50 level.

Breaking through this level and closing above it would be a positive signal in the near term for Chipotle stock. The next resistance level above the price will be found at the upward trend line that you see here.

Draw it on your own graphs. I have linked it from June 4th to the other major pivot point that occurred on August 11th, and this will help guide you to see where the price will stumble and be restrained if we move too quickly .

We are likely to start encountering obstacles, or profit-taking will come in to prevent the price from breaking through this trend line and moving too far out of its range.