SPLK pushes through Thursday's high
Splunk Inc. (SPLK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, SPLK finished the week 6.13% higher at 172.52 after gaining $1.59 (0.93%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 172.52 marks the highest recorded closing price ever. Closing above Thursday's high at 172.25, the stock confirmed its breakout through the prior session high after trading up to $1.59 above it intraday.
Daily Candlestick Chart (SPLK as at Feb 14, 2020):
Friday's trading range has been $2.88 (1.68%), that's far below the last trading month's daily average range of $4.40. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SPLK.
Prices are trading close to the key technical support level at 170.74 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Splunk. Out of 134 times, SPLK closed lower 57.46% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.80%.