In my August 24 review of the charts and indicators of Splunk (SPLK) , I was not impressed and wrote that "Shares of SPLK were trading higher in the early going, but I am inclined to take a pass on this early strength." It turns out that SPLK continued to advance despite my reluctance.
SPLK was upgraded by TheStreet's Quant Ratings Service Monday, so let's go back to the drawing board.
In this updated daily bar chart of SPLK, below, I can see that prices have grinded higher the past two weeks. The trading volume has not increased on this trade higher and that is an issue. Prices are above the rising 50-day moving average line and above the 200-day line.
The daily On-Balance-Volume (OBV) line turned higher in the past two weeks to tell me that buyers of SPLK have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but narrowing, which suggests that the trend-strength is weakening.