Cheesecake Factory (CAKE) Surges as Restaurants Reopen – Stock Likely Range Bound

On Tuesday after the close, Cheesecake Factory (CAKE) provided a business update.

The company announced they have re-opened about 25% of their dining rooms.

In addition, the re-opened Cheesecake Factory restaurants are running at approximately 75% of last year’s sales levels. 

CAKE expects to have 65% of the company’s dining rooms re-opened (with limited capacity) by mid-June. 

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Investors celebrated the news and sent Cheesecake Factory’s stock (CAKE) up 17% on the day.

Let’s review the weekly cycle analysis.

Cheesecake Factory (CAKE) Weekly Chart

cheesecake factory stock price forecast month june investing analysis

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:

cheesecake factory stock cake analyst rating forecast price analysis_june 4

The weekly cycle analysis suggests that CAKE is in a rising phase in an overall bearish weekly cycle pattern. Weekly momentum is positive. The next projected intermediate-term low is due in mid-October.

On the upside, there are Fibonacci resistance zones from 26.28 – 33.55.

On the downside, there are intermediate-term supports from 23.07 – 20.12. For the bulls to gain control of the intermediate-term, we would need to see a weekly close above 38.72.
askSlim Sum of the Evidence:

CAKE sold off 66% between the middle of February and the middle of March. Given this over-extension on the downside, the analysis suggests that the stock will likely trade in a range for an extended period of time. We would expect the stock to trade between 22 – 27 through mid-October.

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.