SPLK is Splunk which went splat. The tight bands (purple arrows) told you a huge move is about to occur. The tight bands, however, do not tell you which direction. It is like squeezing a tube of toothpaste. It will fly out violently but you have no idea where it will fly. After the consolidation zone to begin the year, the bullish traders jumped on board with their chests puffed out ready for a big rally. The stock was crushed.
The brown sideways symmetrical triangle was in play and the failure was out the bottom in sync with the tight bands squeezing out the move. The vertical side of the triangle is from, 158 to 185, Keystone is blind in one eye and cannot see out of the other. Either the numbers are getting smaller and smaller in size each day or the eyes are getting worse. The difference is 27 points so the failure at the triangle at 170-ish targets 140-143 on the downside, and it is achieved, so the sideways symmetrical triangle pattern is satisfied and resolved.
SPLK keeps dropping, however, the investors that stuck with the stock through thick or thin, crawling through minefields holding the shares no matter how much they fell, finally gave up and capitulated. Now they shun this bastard and wish they had never seen Splunk before. Here comes Keystone. What's wrong Sonny? You want to get rid of those shares? Here you go. Keystone was buying on Friday.
Price falls into the green falling wedge a bullish pattern. The chart indicators are universally positively diverged and also oversold wanting to see a recovery. The MACD is trying to create a bit more sogginess for a day or two, perhaps this is simply the final hours where the market makers are trying to bring in crony friends at a good price.
The lower band is violated so the middle band at 158.75, and dropping, is on the table. This line may come down and meet the horizontal price resistance at 152-153-ish. This level may act as a temporary magnet for price.
The SPLK 2-hour chart is possie d as well which is what you want to see. Keystone bot SPLK on Friday and will hold it this week to see if it pops on the possie d. It is all set to go but this is a highly dangerous and speculative trade. SPLK lost -2% on Friday, which was a good long entry point, perhaps. SPLK is down a half percent in pre-market trading. We shall see if SPLK rocket launches, or, if it splats.
The SPLK weekly chart has weak and bleak RSI and MACD so price will want to come back down on the weekly basis. Thus, a relief rally should occur but do not become attached to the trade, ditch it in a few days since she should roll over lower and come back down after the pop for another matching or lower low. A longer term up move should set up for SPLK, a multi-week rally, say, starting around the end of this month or early April. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 6:33 AM EST: Bloop. SPLK sinks -1.1% to 135.21.
Note Added 8:51 AM EST: SPLK gains +0.2% to 136.99.
Note Added 12:55 PM EST: SPLK loses -0.5% to 136.08. Splunk remains in a funk but proclaims that it is not chump junk. The 2-hour chart is looking good with universal possie d. Ditto daily chart. She's ready to go. Anyone got a match to light this rocket? Watch out Keystone! It may blow up on the launch pad!
Note Added Tuesday Morning, 3/9/21, at 6:37 AM EST: The Splunk splatted as the tech sector jumped off a cliff on Monday. XLK -2.4%. SOX plummets -5.4%. AAPL -4.2%. SPLK drops -4.2% to 131.03. Since it was a tech wipeout and that may make a comeback today, the trade will be given a little rope. Not much, however, because sometimes you allow enough rope to only end up hanging yourself. Splunk shows a bit of spunk up +3% in the pre-market to 135.00.
Note Added Wednesday Morning, 3/10/21, at 7:31 AM EST: SPLK gains +3.7% to 135.87 yesterday. Price is chopping deciding if it wants to bottom.
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