Stock On the Brink of a Technical Breakout That Could Return 60%-Plus

This stock has a history of making big moves.
Between January and April, shares rose about 30%, from a low near $343, to a high above $440.


But in July, after the company reported lower-than-expected same-store-sales, shares swung down equally as far, plummeting nearly $100 in a day! The stock dropped from an intraday high of $404.59 on July 19, to an intraday low at $307.20 on July 20 -- a 24% loss is less than 24 hours.

Even though the stock has a history of wild turns, shares haven't moved significantly since that catastrophic July day. As a result, it is currently at a bargain price -- and looks to be at a profitable entry point.

Shares of the burrito mega-chain, Chipotle Mexican Grill (NYSE: CMG), appear to be approaching significant historical resistance near $346. If the stock can definitively surpass this resistance point, it could bullishly move on to complete a large basing pattern. In this case, no significant overhead resistance would be in sight and the stock could surge much further, potentially reaching a new all-time new high, for potential 62% gains.

Helping drive this optimistic growth outlook is the company's aggressive expansion plans. In the first two quarters of 2012, over 150 new restaurants were opened in the United States. And in the future, the company plans to more than double its storefront presence, from around 1,000 current locations to 2,100. Additionally, the fresh food chain recently opened three stores in London and its first location in Paris. As people worldwide develop a taste for Chipotle's quality burritos, overall company sales should continue to rise.

Stock on the Brink of a Technical Breakout
The technical outlook is certainly bullish.

From mid-2010 to June 2012, shares were on a major uptrend. In early 2012, as the stock broke from important resistance near $348, shares catapulted higher on an accelerated uptrend. They eventually climbed to an all-time high of $442.40. However, unable to maintain this momentum, the stock tumbled down to the $387 level and became capped by resistance near $420.  (more)