CHKP closes above its opening price after recovering from early selling pressure
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jun 19, 2019 | by Techniquant Editorial Team
CHKP ended Wednesday at 114.23 gaining $1.49 (1.32%), outperforming the Nasdaq 100 (0.42%). Today's close at 114.23 marks the highest recorded closing price since May 22nd. Trading up to $1.25 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHKP as at Jun 19, 2019):
Wednesday's trading range has been $2.59 (2.29%), that's slightly above the last trading month's daily average range of $2.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHKP. Prices continued to consolidate within a tight trading range between 112.01 and 115.56 where it has been caught now for the whole last trading week.
The share managed to close above the 20-day moving average at 112.98 for the first time since May 17th. When this moving average was crossed above the last time on May 16th, CHKP actually lost -0.58% on the following trading day. Prices are trading close to the key technical resistance level at 115.27 (R1).
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 115.56 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 461 times, CHKP closed higher 57.92% 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 61.17% with an average market move of 0.68%.