With the big rally in the market on Thursday, some stocks broke above resistance. One of those stocks appeared in the restaurant industry today. The Cheesecake Factory (CAKE) looks pretty good here.
The SCTR is moving above 75. The relative strength is clearly outperforming. The volume soared on the breakout and the MACD turned up from just above zero. All this is excellent.
As the market tries to find a bottom here, some of these breakouts are happening every day. Stay tuned.
Greg Schnell, CMT, MFTA
About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis.
Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter.
He is also the author of Stock Charts for Dummies (Wiley, 2018).