Earnings Play: Splunk
Jason Lubin August 25, 2020 11:05 AM
Splunk's uptrend may be coming to an end.
On Wednesday, after market, Splunk (SPLK) is anticipated to report second quarter LPS of $0.34 compared to an EPS of $0.30 last year on revenue of approximately $520.7 million vs. $516.6 million a year earlier. The company provides software for machine log analysis and its current analyst consensus rating is 31 buys, 7 holds and 2 sells, according to Bloomberg.
Technically speaking, on a daily chart, Splunk's stock price has been holding an uptrend that began in mid-March and has been using the 20-day simple moving average (SMA) as support. Almost 3 weeks ago price crossed under the 20-day SMA and 50-day SMA, a bearish signal. Looking back to mid-Febraury traders can observe that price began a new downtrend the last time it fell below the 50-day SMA. The RSI is currently holding just above 50 and has been trending downward since late-May, which could possibly be unconfirmed bearish divergence. Price appears to have found resistance at the 20-day SMA. Price will likely continue to trend lower and break below the 189.00 support level, confirming a new bearish structure in price action. From there price will presumably decline to 171.00. If price manages to hold above 189.00, price could pop back up to the all-time high of 217.00 and possibly reach for the first Fibonacci target of 251.00.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.