By Mill Chart
Last update: Aug 8, 2025
Technical breakout trading identifies stocks with solid trends that are pausing before their next rise. This approach uses two main measures: the ChartMill Technical Rating, which checks the stock’s technical condition, and the ChartMill Setup Quality Rating, which looks for high-chance breakout patterns. Stocks scoring well on both often offer good trading opportunities.
CHEESECAKE FACTORY INC/THE (NASDAQ:CAKE) matches this description, with a Technical Rating of 8 and a Setup Rating of 9, signaling both steady momentum and a clear pause in price movement.
The Technical Rating of 8 shows CAKE’s steady long-term trend and performance. Key points from the technical report include:
A high Technical Rating is important for breakout strategies because it confirms the stock’s upward trend is stable, lowering the chance of false signals.
The Setup Rating of 9 points to an ideal pause in price movement, offering clear entry and exit points:
Breakout traders favor high Setup Ratings because they spot stocks taking a breather, offering better risk/reward chances than chasing overextended moves.
The automated setup suggests:
Traders should watch if CAKE stays above its support zone and looks for a breakout with higher volume.
For fresh technical breakout ideas, check the Technical Breakout Setups Screen, which finds stocks with high Technical and Setup Ratings daily.
Disclaimer: This analysis is not investment advice. Always do your own research and use risk management before trading.