Sometimes the 50-day SMA works like a charm for support/resistance and other times not. Cheesecake Factory (CAKE) appears to be in the former category. The stock formed a rising wedge in March, met resistance at the 50-day last week and turned lower the last four days.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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