I had been short CMG in the past days, believing that we will break the current range to the downside.
With the market strength and the market confidence that low oil prices will help retailers (stronger consumption going into year end,) I closed my short position and I am now looking a buying a breakout above $653.
The EV pattern does not show strong accumulation, but the sector is in a buy mode and CMG is in a very stable supply zone. The market itself is somewhat overbought, which is the reason why we have a slightly negative S&P profit expectation for the next three days.
The two Tables below tell us that a Breakout on volume will work better than a normal breakout.
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