CHKP breaks back above 20-day moving average
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHKP ended Wednesday at 107.92 gaining $0.49 (0.46%), underperforming the Nasdaq 100 (1.21%). Trading up to $0.77 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 107.59, Check Point confirmed its breakout through the prior session high after trading up to $0.71 above it intraday.
Daily Candlestick Chart (CHKP as at Jul 01, 2020):
Wednesday's trading range has been $2.20 (2.06%), that's slightly below the last trading month's daily average range of $2.53. 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.
The market managed to close back above the 20-day moving average at 107.78 for the first time since June 18th. After having been unable to move lower than 105.85 in the previous session, the share found buyers again around the same price level today at 106.10. The last time this happened on Monday, CHKP gained 1.02% on the following trading day.
CHKP shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight 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 457 times, CHKP closed higher 58.64% 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 60.61% with an average market move of 0.73%.