CHKP slumps -1.17% on high volume
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, CHKP ended Tuesday at 116.25 tanking $1.38 (-1.17%) on high volume, underperforming the Nasdaq 100 (-0.5%). This is the biggest single-day loss in over a month. Trading up to $1.65 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CHKP as at Jul 16, 2019):
Tuesday's trading range has been $1.85 (1.59%), that's slightly above the last trading month's daily average range of $1.76. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHKP.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji.
After trading as low as 114.59 during the day, the market found support at the 200-day moving average at 114.94. The last time this happened on December 14, 2018, CHKP actually lost -3.05% on the following trading day. The stock closed below the 20-day moving average at 116.85 for the first time since June 18th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 53 times, CHKP closed higher 56.60% 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 75.47% with an average market move of 1.78%.