CAKE pushes through key technical resistance level
The Cheesecake Factory Incorporated (CAKE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CAKE ended Thursday at 19.66 gaining $0.79 (4.19%) on high volume, strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CAKE as at Mar 26, 2020):
Thursday's trading range has been $4.58 (26.94%), that's above the last trading month's daily average range of $3.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CAKE. Prices continued to consolidate within a tight trading range between 15.00 and 22.09 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, CAKE actually lost -1.82% on the following trading day.
Buyers managed to take out the key technical resistance level at 19.50 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 22.09 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for The Cheesecake. Out of 277 times, CAKE closed higher 51.26% of the time on the next trading day after the market condition occurred.