CHKP breaks back below 100-day moving average
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CHKP finished Thursday at 119.23 losing $0.51 (-0.43%) on high volume, slightly underperforming the Nasdaq 100 (-0.08%). Closing below Wednesday's low at 119.62, Check Point confirmed its breakout through the previous session low after trading up to $0.82 below it intraday.
Daily Candlestick Chart (CHKP as at Jul 11, 2019):
Thursday's trading range has been $1.50 (1.25%), that's slightly below the last trading month's daily average range of $1.72. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHKP.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed back below the 100-day moving average at 119.56 for the first time since July 3rd. When this moving average was crossed below the last time on May 23rd, CHKP actually gained 0.47% on the following trading day.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 120.99 where further buy stops could get triggered. As prices are trading close to July's low at 116.43, downside momentum might speed up should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Check Point. Out of 142 times, CHKP closed higher 59.86% 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 65.49% with an average market move of 1.36%.