SPLK ends the day on a bullish note closing near the high of the day
Splunk Inc. (SPLK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SPLK finished the week 17.97% higher at 184.26 after surging $20.81 (12.73%) today on high volume, notably outperforming the S&P 500 (0.24%) following Thursday's earnings report. This is the biggest single-day gain ever recorded for the share. The last time we've seen such an unusually strong single-day gain on May 5th, SPLK gained 1.08% on the following trading day. Today's close at 184.26 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SPLK as at May 22, 2020):
SPLK reported earnings of $-0.56 per share after Thursday's market close. With analysts having expected an EPS of $-0.57, Splunk Inc. surpassed market expectations by 1.8%. The company's last earnings report was released on March 4, 2020, when Splunk Inc. reported earnings of $0.96 per share hitting market expectations.
Friday's trading range has been $14.76 (8.59%), that's far above the last trading month's daily average range of $6.57. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SPLK.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 176.31 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since May 11th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 150.12 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Splunk. Out of 66 times, SPLK closed higher 60.61% 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 59.09% with an average market move of 1.04%.