Updated
SPLK (Splunk) retrace
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.
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.
Note
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.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.