Shares of Check Point Software Technologies (NASDAQ:CHKP) have been trading inside its April range since the April 26 earnings report. This narrowing action has been capped by the stock’s 200-day moving average. At present CHKP remains range bound but is showing some relative strength. While the Nasdaq 100 put in a lower low during this morning flush, CHKP returned to green in the early going and is working on a higher low.
CHKP is tracing out a fourth straight higher monthly low despite overhead pressure from the 200-day moving average. This pattern is very similar to the action back in April/May/June of last year that preceded a powerful breakout in early July. A key upside hurdle for CHKP is the $122.00 area. Once past, the stock will have cleared both the April and June highs. On the downside, a close back below $115.00 would violate the July lows, sending a clear warning sign that more base building will be needed before a fresh rally leg can develop.
Note: We have no position.
You can ready Gary S. Morrow’s original post here.