CAKE Technical Analysis: Buyers Retain $3.80 With Hopes To Reach $5

Key Technical Points:

Past Performance of CAKE

As predicted in our previous article, the CAKE prices show a post-retest reversal from $3.85 with low price rejection candles retesting the broken resistance trendline. Moreover, the bullish reversal comes with a morning star pattern formed by the police engulfing the candle of a 4% jump last night. However, the buyers will have to undermine the higher price rejection due to the selling pressure near the $4.27 horizontal level.

Source - Tradingview

CAKE Technical Analysis

As the CAKE price trend takes a bullish reversal after retesting the broken $3.85 marks, we see a jump in the intraday trading volume. This reflects an increase in the bullish commitment teasing a bull run.

With the bullish turnaround in the 50-day SMA, the possibility of a price jump above the 100-day SMA increases. However, the prices will have to undermine the selling pressure near the 100-day SMA.

The RSI slope is able to maintain the upward trend in the nearly overbought area indicating an increase in bullish optimism. However, a slight bearish divergence is observed teasing the possibility of an increased supply inflow.

Additionally, it is worth noting that the MACD indicator displays an upward trend in the slow and fast lines, but does not show a significant bullish increase. Therefore, the indicator suggests a good chance of a sustained uptrend

In a nutshell, the CAKE technical analysis shows a bull run possibility if the buyers beat the 100-day SMA.

Upcoming Trend

If the CAKE prices exceed the 100-day SMA, the breakout rally will beat the $4.27 mark to reach the $5 mark. However, a bearish reversal will form a double top pattern teasing a downfall below the $3.85 mark to reach $3.5.

Resistance Levels: $4.27 and $5

Support Levels: $3.85 and $3.5