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Fan Yang

Check Point Software Technologies (CHKP) Another Corrective Wave Ahead

Check Point $CHKP has been in a choppy correction since making a higher on the year around $121 in September 2018. 

CHKP Daily Chart

(click to enlarge)

Resistance Shows Bears are in Charge:
- The daily chart below shows us that price fell below the 200-day simple moving average, came back up across it but is immediately pulled back below the 200-day SMA. 
- Also note that a projected falling trendline acted as resistance. 
- Finally, the RSI is still holding under 60.
- The price action under $110 also showed that there was strong selling here last week.
- These are signs that bears are still in charge.
Downside:
- If price can break back below $103.50, a recent support/resistance pivot, it is probably going to continue to test the December 2018 low around $98.60.
- I would prepare for the prospect of a lower low towards the $93-$95 area, which has been a common support area as we can see on the weekly chart below.

CHKP Weekly Chart

(click to enlarge)