Check Point Software Technologies (CHKP) is an “old tech” play that has grown by 19% during the last one-year period but is sitting 13% off its 52-week highs. Earnings momentum is weakening with back-to-back quarterly losses of 12.5% and 7.2% respectively. The stock has been negative in a majority of weeks in Q4 2017 and underperformed the overall tech sector in early 2018. CHKP has traded below its 200-day simple moving average since mid-November, a hallmark bearish characteristic. Look to short CHKP on a stop below a bear weekly flag formation trigger under the psychologically important $100 level. If support is taken out target a move to $80.
CHKP: Out with the old tech
March 2, 2018 08:00 AM
About the Author
Doug Busch has been trading the U.S. equity markets for two decades using traditional technical analysis, as a trend follower, with an emphasis with Japanese candlesticks. @ChartSmarter