CHKP closes within previous day's range after lackluster session
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
CHKP finished the week -1.6% lower at 105.90 after losing $0.49 (-0.46%) today on low volume, but still strongly outperforming the Nasdaq 100 (-2.5%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CHKP as at Jun 26, 2020):
Friday's trading range has been $2.04 (1.9%), that's below the last trading month's daily average range of $2.58. 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 last time a Black Candle showed up on Tuesday, CHKP lost -1.85% on the following trading day.
Prices are trading close to the key technical resistance level at 106.89 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 108.73 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 103.43 where further sell stops could get activated. Further selling might move prices lower should the market test May's nearby low at 101.27.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Check Point. Out of 702 times, CHKP closed higher 53.99% 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 59.54% with an average market move of 0.70%.