Cheesecake Factory: Sequence Calling For More Upside

In this article, we will take a look at the latest moves in The Cheesecake Factory Incorporated (CAKE) stock.

Cheesecake Factory is an American Restaurant chain and distributor of cheesecakes which has its headquarter in Los Angeles, California. The Restaurant has around 210 locations around the U.S. but they also expanded into international markets. The restaurant is listed in the NASDAQ 100.

The company released its first-quarter earnings on May 1. The revenue came in at $599.48 million and consequently missed the consensus estimate of $602 million. However,  the adjusted earnings per share were $0.62, beating expectations of $0.60. Even though the earnings missed the forecast numbers the stock was able to make a new high.  Below you can see the daily chart of Cheesecake Factory. The stock ended the cycle from the  07/27/18 peak at the 12/28/18 low. And above from there is has been correcting that cycle.

With the new spike higher after the earnings release, it managed to break above the 02/21/19 peak making it a 5 swings incomplete sequence from its 12/18/18 low, opening up extension higher. As long as the stock stays above the 6th swing low ($48.21) it should ideally trade higher into the blue box area towards $52.91-$58.19. This coincides with the identical cycle in the world indices.

The Cheesecake Factory 05.04.2019 Daily Sequence Analysis



In the last chart, you can see easily that the FTSE 100 Index is trading within the same cycle as the Cheesecake Factory stock and has an incomplete sequence to the upside based on the "One Market Only" concept. This can also be the first indication that the stock could potentially trade higher as well into its respective equal legs area.

The Cheesecake Factory vs FTSE 100 05.04.2019 Sequence Analysis

Cheesecake Factory vs FTSE 100




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