This Is What a VCP Breakout Is Supposed to Look Like
Looking through this morning’s premarket movers, CAKE, The Cheesecake Factory, immediately stood out.
The stock broke out of a well-formed base in early June.
Beautiful VCP action.
Each contraction became smaller, volatility dried up, and the tight price action provided an attractive risk-to-reward opportunity.
After the breakout, CAKE continued forming higher highs and higher lows while repeatedly finding support near its rising 20-day moving average.
Now the stock is gapping higher following earnings.
