MARKET MOVERS Friday, August 7, 2020 Technical Assessment Company Ticker Price Support Resistance Intermediate-Term: Bullish Chipotle CMG 1186.80 1085 NM Long-Term: Bullish Mexican Grill Gold futures hit another all-time high of $2,082/oz. on Chipotle Mexican Grill operates more than 2,000 restaurants that Thursday and silver soared to $29/oz. (the highest since 2013). offer quick service, maintain traditional cooking methods and utilize What’s behind these parabolic moves and is there anything high-quality ingredients. It has a tightly focused menu, but store that can stop this metals freight train? design and decor vary. The company has been expanding rapidly as Well, it has been the perfect storm for metals from an interest in Southwestern food has spread. intermarket perspective. Since February, the whole yield has crashed, benefiting the metals because there is a cost to carry CMG broke out to all-time highs (ATHs) on May 15 and then or hold them. In addition, lower rates provide less competition continued higher, peaking at $1,086 on May 26. The stock for other assets. Also, after spiking to $103.96 on March 23 consolidated, tracing out a bull flag and bullishly, finding support (the stock market bottom) in a flight to safety, the U.S. Dollar from the 10- and 21-day exponential moving averages. On July 6, Index (USD) has come tumbling down to a recent low of CMG broke out to ATHs once again on a nice pickup in volume. $92.52. A lower currency is also very “metals friendly” as Based on the size of the bullish base and “V” bottom, CMG could see owning gold and silver is a way to protect assets from a a measured move to the $1,300+ region. According to Investors.com, weakened state of buying power versus other currencies. A CMG has high Relative Strength (RS), Group RS, and Accumulation lower dollar is inflationary as goods from other countries ratings. become more expensive to buy. Whether it’s the two-year, the five-year, or the 10-year We would put a stop-loss just under chart support and the 50-day Treasury, yields appear to be tracing out a bullish wedge since moving average at $1085. We would take profits in the $1,300 area. June. Of note, the 10-year yield is closing in on the March low +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ of 0.5%. If yields break out of the wedge formation, we could see a decent move higher for yields, which could halt the Twitter TWTR 37.69 34.50 39 metals. The USD has stopped falling in recent days and has put in Twitter calls itself ‘a platform for public self-expression and a minor bullish momentum divergence on the daily chart. Any conversation in real time.’ It remains true to its initial format, with reversal higher in the greenback could take at least some of the tweets limited to 140 characters of text, but is experimenting with air out of the quite extended metals market. Interestingly, longer-format tweets. Any user can create a tweet, and any user can commercial hedgers (smart money) are bullish toward the follow other users with no restrictions. dollar while large speculators are bearish. (Mark Arbeter, CMT) TWTR traced out a large bullish “V” bottom between late February and early June. Since then, the stock has put in another smaller “V” Strengthening Sectors: with a handle or bull flag. If the stock can clear the $39 region in Technology, Consumer Discretionary convincing fashion, these bullish formations will be complete, opening the door for a possible move to at least the $50 level. There Weakening Sectors: is some chart resistance in the $45 to $48 zone from the prior highs in Real Estate, Utilities June 2018 and September 2019. According to Investors.com, TWTR has high Accumulation/Distribution and Group Relative Strength Recent Picks: ratings. TSLA, BA, TECH, AAL, ERIC, EA, JBLU, CENT, NDAQ, NLOK, PCAR, JPM, KBH, GOLD, PTON, THO, LEN, DAL, We would put a stop-loss just under chart and moving-average CMI, AMD, PANW, FDX, APD, PGR, DHI, CARR, CRL, HA, support at $34.50. We would take profits in the $45 area. JPM, UNH, LULU, BABA, PYPL, NVDA, TECH +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ INDEX PRICE SUPP RESIS NASD 11108 8600 11800 NYSE 12729 11500 13600 S&P 500 3349 3000 3386 Investing in stocks involves risks that may be exacerbated by market and/or price volatility. 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