SPLK (Splunk) retrace

17 авг. 2020 г.

Splunk has a solid uptrend over the long term, as well as a STEEP uptrend since the major pullback of March. The stock had crashed roughly 40% in March, comparatively over its overall uptrend, and bounced off the Fibonacci ratio of 61.8%. This was met with strong resistance, which coincided with a steep uptrend. Currently, we are witnessing just a small profit taking, as the stock may bounce from this resistance level.

We expect this stock to potentially run into resistance again at the All Time High, which may create a double top leading to a bigger pullback. However, if uptrend continues, we are looking at the targets of $260, and $300 (short term and long term 161.8% Fibonacci Extensions - Round numbers theory)

If the stock retraces more, we have our support areas mapped out, the blue lines coincide with 50 and 61.8% Fibonacci retraces, and would be areas of strong resistance. If we see a strong bounce from these lines, this will be a buy.

27 авг. 2020 г.

Заметка

Splunk decided to retrace to previous high, and outperform. However, it closed at same level as previous high, this is a resistance level, so it must close above it for us to be able to continue to the next Fib level up.