CAKE or Death?
The Cheesecake Factory (CAKE) reported better than expected earnings which peaked the interest of the The Kirk Report and Trader Mike - which then peaked my interest. I took a look at its daily chart, which didn't look too great and so broadened it out to a monthly chart. 2006 was not a great year for the stock and it may yet still be a little early to get busy with it. The 50-month MA proved to be a step too far on the resistance front and should it stumble again at this average I would look for further weakness. I don't think it would make it back to $11-12 (the measured move target - although the chart has cut off the tail end of that projection), but the congestion band between $15.50 and $20.00 would be an interesting accumulation zone.
Buyer beware.
CAKE
Buyer beware.
CAKE