Check Point Software Rises 3.82% to $188.12 Amid Technical Rebound Signals

Check Point Software (CHKP) concluded the latest session with a 3.82% gain, closing at $188.12, marking two consecutive days of advancement and a cumulative 4.09% increase over this period. This positive momentum follows a recovery from a low of $178.68 on August 12, supported by rising volume, which lends credibility to the recent upward movement.
Candlestick Theory
Recent candlestick patterns reveal a potential double bottom formation, with troughs at $178.68 (August 12) and $180.33 (August 11) forming clear support. The subsequent bullish engulfing candle on August 13, closing near the session high of $188.57, signals robust buying pressure. Resistance is evident near $195.00 (August 5 high) and $220.53 (July 29 peak), with immediate overhead supply at $189.35–$190.74 (August 6–7 highs). A sustained break above $190 could accelerate upward momentum, while failure to hold $180 may trigger renewed selling.
Moving Average Theory
The 50-day moving average (∼$215), 100-day MA (∼$210), and 200-day MA (∼$205) all slope downward and reside above the current price, reflecting entrenched bearish intermediate to long-term trends. However, the short-term trend shows incipient recovery, as the price has rebounded from the $178–$181 support zone. Confluence resistance emerges at $195–$200, where the declining 50-day MA and psychological resistance converge. A bullish cross of shorter-term averages may signal trend reversal potential, but alignment remains absent.
MACD & KDJ Indicators
The MACD histogram is poised for a bullish crossover, as momentum shifts following the oversold trough. KDJ metrics show the %K line hooking upward from oversold territory (<20) after the August 12 low, though still below the %D line, suggesting early-stage recovery. While both oscillators lack definitive confirmation, they align with the recent bounce, implying waning bearish momentum. Divergence is absent, as price and momentum indicators rebounded in tandem.
Bollinger Bands
Bollinger Bands contracted sharply during the late-July to early-August decline, culminating in an expansion to the downside. The price recently touched the lower band ($178.68), triggering a reactive bounce toward the 20-day moving average (mid-band, ∼$185). Bandwidth narrowing from recent extremes may precede directional resolve. Closing above the mid-band ($185) supports short-term bullish bias, though the upper band ($195) remains a volatility-based resistance.
Volume-Price Relationship
Volume surged to 1.16 million shares on August 13—a 18% increase over the prior session—validating the 3.82% advance. This follows two sessions of declining volume during consolidation ($180–$182), reinforcing buyer conviction. Notable distribution occurred on July 30 (4.05 million shares, –14.5%), creating overhead supply. Current accumulation near support suggests absorption of sellers, but sustained volume above 1 million shares is essential for continued upside.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold territory (35) on August 12 to 52 currently, reflecting improving momentum but avoiding overbought caution. This aligns with the price recovery and neutralizes immediate downside risk. The indicator’s warning nature is evident in its failure to reach oversold (<30) during the July decline, instead forming higher lows against price’s lower trough—a subtle bullish divergence that anticipated the current rebound.
Fibonacci Retracement
Applying Fibonacci levels to the dominant downtrend from $220.53 (July 29 high) to $178.68 (August 12 low) yields retracement hurdles at $189.70 (23.6%), $195.60 (38.2%), and $199.60 (50%). The August 13 close at $188.12 approaches the initial 23.6% resistance, where profit-taking may emerge. A decisive breach of $189.70 would open upside toward $195.60, supported by confluent resistance from the July 31 swing high ($190.10) and the 38.2% retracement.
Confluence and Divergence
Confluence is notable at $180–$178, where candlestick support, volume confirmation, and Bollinger Band reactivity aligned to catalyze the rebound. Divergence emerged in July when RSI formed higher lows against price’s lower troughs, foreshadowing the recent recovery. The 50-day MA, 23.6% Fibonacci level, and swing-high resistance near $195–$200 represent a critical confluence barrier. Sustained trade above $190 would strengthen bullish alignment across indicators.