CHKP pushes through Wednesday's high
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHKP finished Thursday at 95.50 gaining $1.64 (1.75%), notably underperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 95.29, Check Point confirmed its breakout through the previous session high after trading up to $2.09 above it intraday.
Daily Candlestick Chart (CHKP as at Mar 26, 2020):
Thursday's trading range has been $3.92 (4.17%), that's below the last trading month's daily average range of $6.08. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CHKP.
The stock managed to close above the 20-day moving average at 94.77 for the first time since February 21st. Unable to break through the key technical resistance level at 96.40 (R1), the market closed below it after spiking up to 97.38 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 20th, CHKP lost -2.51% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 150 times, CHKP closed higher 52.67% 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 0.53%.