SPLK closes above its opening price after recovering from early selling pressure
Splunk Inc. (SPLK) Technical Analysis Report for Mar 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SPLK finished Monday at 113.44 gaining $3.14 (2.85%), notably outperforming the S&P 500 (-2.93%). Trading up to $6.61 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, SPLK gained 2.59% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SPLK as at Mar 23, 2020):
Monday's trading range has been $11.37 (10.15%), that's slightly above the last trading month's daily average range of $9.96. 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 significantly higher than usual for SPLK.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 105.00 (S1). Prices are trading close to the key technical resistance level at 118.66 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 120.93 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Splunk. Out of 177 times, SPLK closed higher 62.15% 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 53.67% with an average market move of 0.74%.