SPLK closes higher for the 2nd day in a row
Splunk Inc. (SPLK) Technical Analysis Report for Mar 20, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SPLK finished the week -4.25% lower at 110.30 after gaining $2.78 (2.59%) today, significantly outperforming the S&P 500 (-4.34%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SPLK as at Mar 20, 2020):
Friday's trading range has been $12.93 (11.89%), that's above the last trading month's daily average range of $9.79. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SPLK.
Unable to break through the key technical resistance level at 118.66 (R1), the market closed below it after spiking up to 120.93 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Splunk. Out of 254 times, SPLK closed higher 51.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.69% with an average market move of 0.84%.