Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, which purpose is to provide a relative definition of high and low. This defintion is used to identify buy and sell signals and have proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. Get-A-Graph uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Bottlenecks in bandwidth indicates a upcoming change. Break up through the moving average line, or continuously movements above the moving average line indicates a break up, and vice versa downwards.
CHKP Forecast and Technical Stock Analysis
Hold candidate since 2019-11-07 Gain 1.58% PDF
Check Point Software Technologies Ltd. gained 0.10% in the last trading day ( Friday, 15th Nov 2019 ), rising from $116.28 to $116.40 , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 0.93% from a day low at $115.96 to a day high of $117.04. The price has risen in 8 of the last 10 days and is up by 3.82% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 116 021 more shares were traded than the day before. In total, 564 115 shares bought and sold for approximately $65.66 million.
- 30 day high of the CHKP stock price was $117.04 and low was $106.14.
- 90 day high was $117.04 and low was $105.13.
- 52 week high for Check Point Software Technologies Ltd. - $132.76 and low - $98.57.
Check Point Software Technologies Ltd. lies in the upper part of a weak rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $117.03 will firstly indicate a stronger raising rate. Given the current short-term trend, the stock is expected to rise 5.42% during the next 3 months and, with 90% probability hold a price between $114.21 and $123.37 at the end of this period.
Check Point Software Technologies Ltd. holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at $115.73 and $110.92. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday October 22, 2019, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
RSImin/max Values: [ 25 - 75 ]
The stock holds a RSI14 at 82 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
* Stockinvest.us uses dynamical calculated RSI max/min levels to determine when stock is oversold or overbought based on historical behaviour.
Support & Resistance
Check Point Software Technologies Ltd. finds support from accumulated volume at $113.11.
This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $1.08 (0.93%) between high and low. For the last week, the stock has had daily average volatility of 1.14%.
The stock is overbought on RSI14 and lies in the upper part of the trend. Normally this will pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stop-loss: $110.18 (-5.34%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 82 and this increases the risk substantially. There is a buy signal from pivot bottom found 18 days ago.)
1.14 %Average volatility
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|CHKP $116.40 ($0.12 0.10%)|
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