Splunk Technical Analysis (NASDAQ:SPLK)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Splunk stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the SPLK stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Splunk. Technical analysis uses an approach for Splunk stock analysis that does not care for the fair value of a company but uses price and volume data only.
Splunk Moving Average
Moving averages help predict the price direction of SPLK stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $102.88 is below the price of $104.07.
Splunk Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the SPLK stock. The stock price is trading between the average and the upper band in the context of Splunk bollinger bands.
Splunk Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Splunk MACD indicator can be used to identify bullish and bearish trends for the stock.
Splunk Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of SPLK stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.