Splunk, Inc. (SPLK) engages in the development and marketing of software solutions. Its products include Splunk cloud, Splunk light and Splunk enterprise. It also offers solutions for information technology operations, security, internet-of-things, application analytics, business analytics and industries…
Take a look at the 1-year chart of Splunk (NASDAQ: SPLK) below with my added notations:
SPLK had formed a key level of resistance at around the $150 (green) mark. The stock had tested that area multiple times since the end of April and finally broke above it yesterday. The stock should be headed higher, overall, from here.
A long trade could be entered now, or on a pullback down to the $150 area, with a protective stop set below the level of entry.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT