SPLK closes higher for the 4th day in a row
Splunk Inc. (SPLK) Technical Analysis Report for Mar 24, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SPLK ended Tuesday at 121.10 gaining $7.66 (6.75%), significantly underperforming the S&P 500 (9.38%). Trading $3.84 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 16th, SPLK actually gained 14.29% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SPLK as at Mar 24, 2020):
Tuesday's trading range has been $6.87 (5.65%), that's below the last trading month's daily average range of $9.82. 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 strongly higher than usual for SPLK.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 118.50 earlier during the day, the stock bounced off the key technical support level at 118.66 (S1). The failure to close below the support could increase that levels significance as support going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Splunk. Out of 333 times, SPLK closed higher 62.46% 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 56.46% with an average market move of 1.47%.