Shares of Check Point Software Technologies Ltd. ended the trading session higher by $0.36 or 1.03% from its previous close. Check Point’s price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Check Point Software Technologies Ltd. develops, markets and supports a range of software and hardware products and services for IT security and offers its customers a network and gateway security solutions, data and endpoint security solutions. The company is based in Tel Aviv, Israel.

Check Point’s recent stock range has been formed by a trough where calculated support was defined at $33.24 and by a peak that established the resistance level at $35.71, which could be used by traders planning their trades.

Traders wanting to establish a position in Check Point Software or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:

Source:http://www.tradershuddle.com/2010083074115/Candlesticks/checkpointsoftware-bullish-engulfing-formed.html

Shares of Check Point Software Technologies Ltd. (NASDAQ:CHKP) closed the trading day higher by $0.01 or 0.03% from its previous close. Check Point’s shares price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.

Check Point Software Technologies Ltd. (NASDAQ:CHKP) develops, markets and supports a range of software and hardware products and services for IT security and offers its customers a network and gateway security solutions, data and endpoint security solutions. The company is based in Tel Aviv, Israel.

Check Point’s current stock range is defined by a trough, which marks calculated support at $33.24 and by a peak that marked the resistance point at $35.47. These levels are closely watched by traders managing their positions.

Traders wanting to establish a position in Check Point Software or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short term pause in the stock’s price action. This pause results in an entry point for traders depending of which way the stock resolves this short term indecision.

Doji are important candlesticks that provide information on their own and as components in a number of important patterns. Doji form when a security’s open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.

Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of Check Point Software, given that the stock finished the session higher, bulls should monitor their positions for confirmation that stock will continue higher by taking today’s intraday high. Below a Doji illustration:

Source:http://www.tradershuddle.com/2010082370863/Candlesticks/is-checkpointsoftware-reversing.html