CHKP finds buyers again around 120.71
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CHKP ended Wednesday at 120.83 losing $1.95 (-1.59%), but still slightly outperforming the Nasdaq 100 (-1.67%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHKP as at Sep 16, 2020):
Wednesday's trading range has been $2.46 (2.01%), that's slightly below the last trading month's daily average range of $2.83. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 120.81 in the previous session, the market found buyers again around the same price level today at 120.71. The last time this happened on September 10th, CHKP gained 0.14% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 123.26 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down 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 463 times, CHKP closed higher 56.16% 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 60.69% with an average market move of 0.87%.