CMG support zone 32 hit

Support zone: close above is a hit. Close on the level is a push. Graded on the regular-session close.

A support zone is a price below the market where a large amount of options positioning sits. The idea is that this positioning can slow a move down there, so the test is simple: does the stock close above it? When it was posted at 11:32 ET, CMG traded at 32.72, 2.2% above the support zone. On the same map, the next level above was 33 and the next level below was 30. See the original post.

Price traded through the support zone during the session (first 5-minute close on the wrong side at 9:30 AM ET), with a low of 30.62 and a high of 33.15. In the last hour price moved down 1.16, from 32.75 to 31.59.

The regular-session close was 32.65, 0.65 (2.03%) above the support zone at 32. Under the rule (support zone: close above is a hit), that is a hit.

Chipotle rose after a Financial Times report that Starbucks had explored a takeover approach with advisers; reports noted no offer had been confirmed. CMG finished the day up 6.2%, while SPY was down 0.4%.

• Axios: Chipotle shares jump on report of Starbucks takeover interest
• Forbes: Chipotle stock surges after report about potential Starbucks takeover
• CNBC: Starbucks-Chipotle takeover, why a deal could work