After a 22% decline from the September peak shares of Splunk (NASDAQ:SPLK) are resting in a very solid support zone. This key area includes the initial 2020 high near the upper band and the stock’s upward sloping 200 day moving average near the lower band. Just above the 200 day is a powerful earnings inspired, breakout gap left behind on May 22nd. Also in this zone is the 1/3 retracement level of the entire 2020 range.
If SPLK continues to stabilize near this zone, which runs from $177.00 to $167.00, a very low risk entry opportunity will develop.
SPLK is a holding in the Tactical Opportunity Portfolio