SPLK closes within prior day's range after lackluster session
Splunk Inc. (SPLK) Technical Analysis Report for Mar 31, 2020 | by Techniquant Editorial Team
SPLK ended the month -14.32% lower at 126.23 after edging lower $0.99 (-0.78%) today, but still outperforming the S&P 500 (-1.6%). Trading up to $2.61 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 23rd, SPLK gained 6.75% on the following trading day. 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 31, 2020):
Tuesday's trading range has been $6.11 (4.84%), that's far below the last trading month's daily average range of $9.61. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
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). After having been unable to move lower than 124.52 in the previous session, Splunk found buyers again around the same price level today at 123.52.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 132.00 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 122.16 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Splunk. Out of 611 times, SPLK closed higher 54.17% 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 56.14% with an average market move of 1.14%.