Chipotle Poised To End 7-Day Skid Ahead Of Q2 Report

Chipotle Mexican Grill, Inc. CMG shares are trading higher by $8.62 (2.6 percent) at $348.60 in Tuesday's session. It's poised to end a horrendous seven-day skid.

A combination of food contamination and rats infestation at differing locations, as well as bearish analyst commentary has instigated an exodus out of the issue.

Over that course of time, Chipotle has declined from its July 13 close ($400.04) to a low of $336.52 on Monday. It posted its lowest close since November when it ended the session at $339.98.

See Also: Food Safety Isn't The Only Concern For Chipotle; Goldman Sachs Cuts Target To $375

In today's session, the stock found support just under that level at $339.00 and began to move higher. The ensuing rally took it beyond Monday's high ($346.37), but came up well shy of Friday's high ($358.58) as the current high stands a $350.89.

Perhaps short-sellers are booking profits ahead of its Q2 report after the close that will not reflect any of the damage incurred from the recent events. Street estimates for EPS stand at $2.45 on revenues of $1.19 billion.

From a technical perspective, it will important for Chipotle's stock to regain its former low for the move that was made in November at $352.96, which is in the vicinity of the key psychological level of $350.00.