SPLK dominated by bears dragging the market lower throughout the day
Splunk Inc. (SPLK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SPLK ended Wednesday at 182.55 losing $2.80 (-1.51%), strongly underperforming the S&P 500 (-0.46%). Today's close at 182.55 marks the lowest recorded closing price since June 15th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 183.91, Splunk confirmed its breakout through the previous session low after trading up to $2.84 below it intraday.
Daily Candlestick Chart (SPLK as at Sep 16, 2020):
Wednesday's trading range has been $6.46 (3.45%), that's slightly below the last trading month's daily average range of $7.86. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SPLK.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on September 10th, SPLK lost -3.06% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical resistance level at 188.33 (R1). After having been unable to move above 187.48 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 187.53.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Splunk. Out of 220 times, SPLK closed higher 53.64% 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 58.64% with an average market move of 2.02%.