CHKP unable to break through key resistance level
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHKP finished the week -0.14% lower at 117.10 after losing $0.78 (-0.66%) today on low volume, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.61 higher after the open, Check Point was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, CHKP actually gained 1.19% on the following trading day. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CHKP as at Feb 14, 2020):
Friday's trading range has been $1.68 (1.43%), that's slightly below the last trading month's daily average range of $1.90. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHKP.
Unable to break through the key technical resistance level at 118.22 (R1), the share closed below it after spiking up to 118.49 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Check Point. Out of 390 times, CHKP closed higher 58.97% 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 60.00% with an average market move of 0.90%.