CHKP closes above its opening price after recovering from early selling pressure
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
CHKP finished Monday at 106.35 gaining $0.45 (0.42%) on low volume, underperforming the Nasdaq 100 (1.14%). Trading up to $0.70 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CHKP as at Jun 29, 2020):
Monday's trading range has been $1.69 (1.6%), that's far 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 bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 8th, CHKP actually lost -0.76% on the following trading day.
Prices are trading close to the key technical resistance level at 106.89 (R1). After having been unable to move lower than 105.19 in the previous session, the share found buyers again around the same price level today at 105.17.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 107.41 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Check Point. Out of 767 times, CHKP closed higher 53.46% 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 56.71% with an average market move of 0.33%.