SPLK unable to break through key resistance level
Splunk Inc. (SPLK) Technical Analysis Report for Mar 19, 2020 | by Techniquant Editorial Team
SPLK ended Thursday at 107.52 edging higher $2.15 (2.04%), strongly outperforming the S&P 500 (0.47%). Trading up to $6.66 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SPLK as at Mar 19, 2020):
Thursday's trading range has been $15.08 (14.36%), that's far above the last trading month's daily average range of $9.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SPLK.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on March 13th, SPLK actually lost -16.91% on the following trading day.
Unable to break through the key technical resistance level at 112.04 (R1), the market closed below it after spiking up to 113.42 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 96.22 in the previous session, the share found buyers again around the same price level today at 98.34.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Splunk. Out of 22 times, SPLK closed higher 59.09% of the time on the next trading day after the market condition occurred.