Short-term swing trade.
When scanning the market for opportunities, we ideally like to stay with names we know. Splunk checks a box there. This is simply just a name we watch and will trade.
We like how quickly this stock flattened out and believe its strength in Thursday and Friday’s session vs the Nasdaq will translate to a move into the 170’s in the upcoming weeks.
Splunk’s quarterly earnings disappointed and that is what has given us this opportunity. We believe it will benefit those courageous enough to buy the dip. Since this is not one of our favourites, we like to limit downside using a tight stop.
Target Price: 172
Entry: Low 150’s
Stop Loss: 150
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