SPLK pushes through Friday's high
Splunk Inc. (SPLK) Technical Analysis Report for Mar 30, 2020 | by Techniquant Editorial Team
SPLK finished Monday at 127.22 gaining $2.46 (1.97%), strongly underperforming the S&P 500 (3.35%). Closing above Friday's high at 126.95, the market confirmed its breakout through the previous session high after trading up to $1.95 above it intraday.
Daily Candlestick Chart (SPLK as at Mar 30, 2020):
Monday's trading range has been $4.38 (3.49%), that's far below the last trading month's daily average range of $9.89. Weekly volatility is also lower, being way 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 118.50 and 132.00 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 120.93 (S1). Prices are trading close to the key technical resistance level at 132.00 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 132.00 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 122.16 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Splunk. Out of 610 times, SPLK closed higher 54.26% 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 56.23% with an average market move of 1.14%.