CHKP closes higher for the 3rd day in a row
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHKP finished the month 16.68% higher at 125.35 after gaining $1.81 (1.47%) today, slightly underperforming the Nasdaq 100 (1.78%). Today's close at 125.35 marks the highest recorded closing price since April 17, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 124.32, the stock confirmed its breakout through the prior session high after trading up to $1.04 above it intraday.
Daily Candlestick Chart (CHKP as at Jul 31, 2020):
Friday's trading range has been $2.63 (2.13%), that's slightly below the last trading month's daily average range of $3.46. Weekly volatility is also lower, being way 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 White Candle.
Buyers managed to take out the key technical resistance level at 125.00 (now S1), which is likely to act as support going forward. The last time this happened on July 7th, CHKP gained 0.05% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 578 times, CHKP closed higher 51.73% 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 56.92% with an average market move of 0.49%.