Chipotle Mexican Grill (CMG) Breakout Higher

No doubt CMG has had an amazing run in 2010 and already thus far in 2011…but it looks like it just wants to climb higher.

The weekly chart below shows the run, as well as the nice consolidation move that ended late January.

Zooming in to the daily chart we see a nice narrowing trading range that today looks like it wants to resolve to the upside.  So far today the stock has held above the breakout level of $260, which makes here and now a decent entry point.  Alternatively one could wait for a daily close above the $260 level.  Stops can be set anywhere between $240 and $250, depending on one's risk aversion.

I see target 1 at $270, target 2 at $280, and a final target 3 could be much higher around $300

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