CHKP rises to highest close since May 6th
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 05, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, CHKP ended the week 3.42% higher at 119.56 after gaining $0.09 (0.08%) today, slightly outperforming the Nasdaq 100 (-0.21%). Today's close at 119.56 marks the highest recorded closing price since May 6th. Trading up to $1.52 lower after the open, Check Point 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 failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHKP as at Jul 05, 2019):
Friday's trading range has been $1.72 (1.44%), that's slightly below the last trading month's daily average range of $1.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHKP.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on April 18th, CHKP lost -1.37% on the following trading day.
The market managed to close above the 100-day moving average at 119.53 for the first time since May 22nd. Prices are trading close to the key technical resistance level at 119.88 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 114.85.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 120.68 where further buy stops could get activated. Trading close to May's high at 120.77 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 28 times, CHKP closed higher 64.29% 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 64.29% with an average market move of 1.09%.