CHKP stuck within tight trading range
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 10, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHKP ended Wednesday at 119.74 losing $0.47 (-0.39%), significantly underperforming the Nasdaq 100 (0.98%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CHKP as at Jul 10, 2019):
Wednesday's trading range has been $1.37 (1.14%), that's below the last trading month's daily average range of $1.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHKP. Prices continued to consolidate within a tight trading range between 119.07 and 120.99 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 119.88 (now R1), which is likely to act as resistance going forward. The last time this happened on May 30th, CHKP lost -2.03% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the close-by swing low at 119.07 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Check Point. Out of 670 times, CHKP closed higher 55.37% 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 62.09% with an average market move of 0.85%.