On Tuesday, JPMorgan lowered their price target on Cheesecake Factory (CAKE) from $29 to $19 while maintaining a hold rating on the stock. The stock is down around 5% on the day and is trading at $20.30 as of 2 PM ET. Let’s take a look at the weekly charts.

 

Cheesecake Factory (CAKE) – annotations by askSlim.com

At askSlim.com 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.com 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.

On the upside, there is an intermediate-term resistance at 21.77 followed by another zone of resistance from 26.2629.88. On the downside, there are intermediate-term supports from 18.7716.90. For the bulls to regain control of the intermediate-term, we would need to see a weekly close above 38.67.

 

askSlim.com 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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