SPLK breaks above 20-day moving average for the first time since February 21st
Splunk Inc. (SPLK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, SPLK finished Thursday at 129.14 gaining $7.10 (5.82%) on low volume, slightly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 128.87, the stock confirmed its breakout through the prior session high after trading up to $3.13 above it intraday.
Daily Candlestick Chart (SPLK as at Mar 26, 2020):
Thursday's trading range has been $9.49 (7.72%), that's slightly below the last trading month's daily average range of $10.09. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPLK.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 124.95 for the first time since February 21st. When this moving average was crossed above the last time on February 3rd, SPLK gained 4.96% on the following trading day.
Splunk shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Splunk. Out of 17 times, SPLK closed lower 52.94% 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 64.71% with an average market move of -1.96%.