CHKP closes higher for the 2nd day in a row
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CHKP ended the month -2.04% lower at 107.43 after gaining $1.08 (1.02%) today, underperforming the Nasdaq 100 (1.96%). Trading up to $0.58 lower after the open, Check Point managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 106.87, the market confirmed its breakout through the prior session high after trading up to $0.72 above it intraday.
Daily Candlestick Chart (CHKP as at Jun 30, 2020):
Tuesday's trading range has been $1.64 (1.54%), that's far below the last trading month's daily average range of $2.59. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 18th, CHKP actually lost -0.77% on the following trading day.
The share managed to close back above the 50-day moving average at 106.62 for the first time since June 23rd.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 105.10 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 456 times, CHKP closed higher 58.55% 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 60.75% with an average market move of 0.73%.