SPLK finds buyers again around 122.20
Splunk Inc. (SPLK) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
SPLK finished the week 13.11% higher at 124.76 after losing $4.38 (-3.39%) today on low volume, slightly underperforming the S&P 500 (-3.37%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SPLK as at Mar 27, 2020):
Friday's trading range has been $4.72 (3.84%), that's far below the last trading month's daily average range of $9.98. 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. Prices continued to consolidate within a tight trading range between 119.67 and 132.00 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 118.66 (S1). Prices are trading close to the key technical resistance level at 132.00 (R1). After having been unable to move lower than 122.51 in the previous session, the share found buyers again around the same price level today at 122.20. The last time this happened on Wednesday, SPLK gained 5.82% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 132.00 where further buy stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Splunk. Out of 609 times, SPLK closed higher 54.19% 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 56.32% with an average market move of 1.14%.