CHKP breaks below Monday's low
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
CHKP finished Tuesday at 130.07 losing $1.50 (-1.14%), significantly underperforming the Nasdaq 100 (0.34%). Closing below Monday's low at 130.13, the share confirmed its breakout through the prior session low after trading up to $0.87 below it intraday.
Daily Candlestick Chart (CHKP as at Apr 16, 2019):
Tuesday's trading range has been $3.50 (2.66%), that's far above the last trading month's daily average range of $2.08. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHKP.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on January 30th, CHKP actually gained 0.89% on the following trading day. Even with a strong opening Check Point closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 128.15 (S1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 126.39.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Check Point. Out of 98 times, CHKP closed higher 54.08% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.27% with an average market move of 1.35%.