CHKP breaks above 200-day moving average for the first time since June 10th
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CHKP ended Thursday at 108.59 gaining $0.67 (0.62%), slightly outperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 108.59 marks the highest recorded closing price since June 10th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CHKP as at Jul 02, 2020):
Thursday's trading range has been $1.59 (1.47%), that's far below the last trading month's daily average range of $2.51. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHKP.
One bearish candlestick pattern matches today's price action, the Shooting Star.
The stock managed to close above the 200-day moving average at 108.50 for the first time since June 10th. When this moving average was crossed above the last time on June 4th, CHKP gained 2.59% on the following trading day. Prices are trading close to the key technical resistance level at 109.99 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Check Point. Out of 494 times, CHKP closed higher 55.06% 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 59.51% with an average market move of 0.74%.