Let's check the charts and indicators on SPLK to see if the stock can continue to perform better than the broad market.
In the daily bar chart of SPLK, below, we can see some technical "problems" with the rally in the price of SPLK this year. Prices bottomed in October-December and broke out over the December high in January. We saw prices rally above the moving averages in January, and even a bullish golden cross as February started.
The daily On-Balance-Volume (OBV) line rallied to the end of February to confirm the rally with aggressive buying. But the bullish story began to weaken in January when we look at the 12-day price momentum study in the bottom panel.
Momentum has made lower highs the past five months despite, SPLK making a new high in February and a double top in April. This is a fairly large bearish divergence and suggests that the path of least resistance going forward is perhaps lower.
In the weekly bar chart of SPLK, below, we can see a mixed story -- prices have been in a uptrend and have more than doubled since the middle of 2017. SPLK is above the rising 40-week moving average line.
The weekly OBV line shows a bearish divergence as prices made new highs in the past three months, but the OBV line did not confirm with its own new highs.
In the lower panel is the 12-week momentum study which shows a pattern of weakening momentum.
In this Point and Figure chart of SPLK, below, we can see an upside or bullish price target of $157 being projected. A decline to around $127.44 would turn this chart bearish, however.
Bottom line strategy: Yes, SPLK has done well from late 2018, but that is in the past. We need to be forward looking and that is the rub -- with the OBV line and price momentum indicating a bearish divergence, I would protect or reduce existing longs.
A close below $120 would turn the charts more bearish.