Cheesecake Factory (CAKE) Stumbles as JPMorgan Lowers Price Target, More Downside Ahead

Steve Miller
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Cheesecake Factory (CAKE) Chart

On Tuesday, JPMorgan lowered their price target on Cheesecake Factory NASDAQ: CAKE from $29 to $19 while maintaining a hold rating on the stock.

The stock (ticker CAKE) is down around 5% during Tuesday’s trading session at $20.30 as of 2 PM ET.

Let’s discuss the weekly price chart and market cycles. 

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

The weekly cycle analysis suggests that CAKE is late in a rising phase and due to form an intermediate-term high. Weekly momentum is positive.

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On the upside, there is an intermediate-term resistance at 21.77 followed by another zone of resistance from 26.26 – 29.88.

On the downside, there are intermediate-term supports from 18.77 – 16.90.

For the bulls to regain control of the intermediate-term, we would need to see a weekly close above 38.67.

askSlim Sum of the Evidence:

CAKE is in a very negative intermediate-term cycle pattern. There is a likelihood that the stock trades down to the intermediate-term supports beginning at 18.77 by the end of July. 

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