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Shares of Check Point Software have been trading inside its April range since the April 26th earnings report.  This narrowing action has been capped by the stock’s 200D moving average.  At present CHKP remains rangebound but is showing some relative strength.  While the Nasdaq 100($QQQ) 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 200D moving average.  This pattern is very similar to the action back in April/May/June of last year which 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.  

No position. 

Earnings due July 26/AM