CHKP pushes through Thursday's high
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, CHKP ended the week 10.0% higher at 119.45 after gaining $0.72 (0.61%) today, slightly underperforming the Nasdaq 100 (0.76%). Today's close at 119.45 marks the highest recorded closing price since July 10, 2019. Trading up to $1.13 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 119.27, the market confirmed its breakout through the previous session high after trading up to $0.38 above it intraday.
Daily Candlestick Chart (CHKP as at Jul 10, 2020):
Friday's trading range has been $2.19 (1.85%), that's slightly below the last trading month's daily average range of $2.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHKP.
After having been unable to move above 119.27 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 119.65. The last time this happened on June 18th, CHKP lost -0.77% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 109.36.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 119.67, upside momentum could speed up should Check Point be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Check Point. Out of 591 times, CHKP closed higher 53.47% 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 59.56% with an average market move of 0.65%.