Splunk (SPLK) was reviewed in the first half of April. At the time I wrote, "SPLK is in a strong uptrend without bearish divergences. We have a longer-term price target of $125 now and traders could go long SPLK above $102, risking below $95 and looking for gains to $125 or higher." Based on this strategy I will assume that some readers/clients are long above $102. Prices are close to a fresh upside breakout with bullish technical indicators. Let's look closer.
In this daily bar chart of SPLK, below, we can see that prices are above the rising 50-day moving average line. Prices are above the rising 200-day line and perhaps extended above the line. The daily On-Balance-Volume (OBV) line has been rising since June and tells us that buyers of SPLK have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has just turned up from above the zero line for a bullish outright buy signal.
In this weekly bar chart of SPLK, below, we can see that prices have been working higher the past two years. Prices are above the rising 40-week moving average line. The weekly OBV line has been positive since June but has retraced some of those gains in the past two months. The weekly MACD oscillator is above the zero line in positive territory but the two moving averages that make up this indicator have been on top of each other. A bullish or bearish signal would follow from the price action coming up.
In this Point and Figure chart of SPLK, below, we can see can a potential upside price target of $136.37. A trade at $113.10 will be a double top breakout.
Bottom line: SPLK is close to an upside breakout. Aggressive traders could go long SPLK above $113 risking to $101. The mid-$130's is my price target.