 What is going on? It's BRICAT23 here with Xtrades. Today, we're going to talk about a member selected ticker that was SPLK. Really interesting trends recently and the important break of a long-term downtrend that we're going to talk on briefly as well. But essentially, Splunk was at around 220, 225 a share back in September, October, November of last year. That was the all-time highs that formed. Since then, it's definitely been in a strong downtrend over the last several months. We're finally beginning to break that downtrend. Literally in mid-June, we broke this downtrend, which is identified by this descending green line here, which also maps relatively closely with the 50-day simple moving average. It's nice to get a break above that dynamic trading level as well as the overall trend line resistance that was forming and acting as a resistance in this downtrend. It's really nice that we were able to clear that level and maybe put a little bit more bullishness into this ticker going forward. On top of that, in terms of just the nearer term, price estimates or price projections, what we have going on in the short term is a really nice double bottom that formed here. Obviously, the earnings recovery after earnings definitely helped and just recovery and growth stocks that we've seen over the last few weeks has helped as well. But really what we had was a healthy downtrend, obviously as supported by the broader downtrend that we've seen recently. But this downtrend formed and we got our first bounce off of this support zone right around 112. So this is where we formed the double bottom support, and then prices rebounded and ran up to that 123 price level, and then rejected and gap down after the earnings event, and then again revisited this 112 price level and bounced nicely. This is where you're starting to see that this could in fact be a double bottom reversal, and then when it is confirmed is when we actually get the break of this neckline resistance, which we're going to call 123 as a price level of this neckline resistance. So before that, you really don't know if it's a double bottom, it could end up rejecting this and being another bear flag. But once we're able to break out of this neckline resistance at 123 and stay above that, that's when you know that this is indeed a double bottom. And on top of that, we were able to break out of the descending trend line that we had been trading in for multiple months. So it's nice to see that we broke out of the longer term downtrend kind of based sideways for a few time frames on this four hour frame. And then we're able to break out of this neckline resistance at 123, get some really strong volume candles and some really strong buying to really spur this continuation to the upside after we reversed on this double bottom. Now, a few things about the double bottom, this really just kind of helps you gauge near term price movements. So my expectations for SPLK have almost actually been realized because, again, this price pattern is about $11 in height. As we talked about, the support was right around 112 and the resistance was right around 123. So that's about an $11 height. And the percentage of meeting price target for these double bottoms is on average about 70%. So that puts our expected move at right around $8. So if we take that $8 and add it to our neckline resistance, that gives us our price target, essentially, if the breakout and the desired direction does occur. And that really puts our price target at 131, which also has confluence with an area that previously acted as a strong support and will likely act as an area of pretty firm resistance on the first retest that we've seen since we essentially broke this support zone. So this would definitely be my price target if we had entered this sooner. I don't think that there's a strong risk to reward trade here for the time being because I would expect this area to have a decent amount of resistance judging by all the selling pressure that was prevalent when we broke this price area. So it's going to take a lot of effort to break out of this 131 price zone. And I really would expect there to be at least a pause in trying and some sort of consolidation pattern to happen here before we're able to make some sort of a continuation play or really judge where the next move in price is going to be. So this would have been a setup that if you're really looking for a strong risk to reward trade, you would have really looked to enter on this break of 123, 124 even back earlier on June 17th. That's where the real strong risk to reward trade is and you can trade the continuation to the upside and then use that kind of support zone or neckline once you break out as an area for a stop loss, for example. But since we're already well into this price target range, since we're within about $2, $3 of this price target range, I don't think that there's a strong risk to reward trade here. As buying is likely going to slow down a little bit, we did see a really nice high volume session and a really nice close on Friday. But again, just with quad-witching, that's obviously going to be just a very high volume session regardless. So it's definitely nice to see that there's still bullish sentiment in there. But I really do worry about this 131 price level. And I personally would like to have the opportunity to look at a longer bullish continuation since we did break this downtrend. But again, we just need to see how prices react to this 131 area of resistance. That's going to tell us a lot. So we're going to have to watch once we do test this price level, we're going to have to watch how hard the rejection is off of this 131 price level. Are there a lot of sellers present or is there not many sellers and we still have a lot of buyers? Because if so, it could definitely pose as a strong trade in the near future for a bullish continuation and a breakout of this 131 price level. So I think that there's definitely good potential here for SPLK in the near future. But in the very short term, I don't think there's anything strong here to trade from a risk to reward perspective just because the trend from this double bottom is really nearing its price target and really almost exhausted at this point. So I really think that the next move if you're looking to trade SPLK or if you have a position on it is to really just watch for the reaction to this 131 price level. Again, it was such a strong area of support previously. We made three bounces off of it and tried to make a nice run topside and break this trend previously. But when we didn't, we essentially sold off, made a small bounce and then broke down on really high relative volume. So it's definitely something that should have a good amount of sellers or at least make the buyers a little bit anxious. So I expect we'll see some profit taking once we retest this 131 trend line. But again, you're going to have to judge the amount of profit taking and the amount of selling pressure by both volume in the candles that you're seeing the size of the candles for this, for the consolidation phase that we get there. And I do think this could be a prime example of a good ticker to keep an eye on for when we do eventually form a nice consolidation phase here. And then we could potentially look for a strong risk to reward trade, hopefully to the upside. But again, we're just going to take it as it is and based on the consolidation pattern that we see, we're going to trade it accordingly because we have to come into these things with really no bias and take what the information gives us, take what the volume and price action tells us and the consolidation pattern. So ultimately, I think it's a great trade if you enter it on the breakout of the double bottom. But if you did not enter on the breakout of the double bottom and are looking to enter the trade now, I would not recommend it just because again, there's really no strong risk to reward trade here, no strong move potential to the upside that I see just because again, this area should be acting as a pretty strong resistance. And then I do think that prices will likely trend sideways or even potentially downwards after visiting this area due to the strong potential of this area being a resistance. So that's kind of where I stand on SPLK. Again, it's a really good setup and it's a really good example of a double bottom and how one played out and also breaking out of a longer term downtrend. So it's a really good educational piece which is really why I wanted to talk about it today. And then you'll also get to see how it reacts to an area that previously was a very strong support. So now it should act as a pretty strong area of resistance and will likely need a lot of buyers to break through this level. So I think that there's just a lot of good educational content in this overall setup. So definitely a fun one. Thank you again for the suggestion. And if you guys have any questions about this setup or if you see any other potential double bottoms that you want me to take a look at, feel free to comment below or reach out to me in the chat. They're really nice patterns. They're very reliable once you do get the breakout of the neckline. But again, you don't want to enter these prematurely because often they can be bare flag. They could be bare penance depending on how you look at it. So it's important that you get that breakout of the neckline before you enter. Otherwise you could get trapped into potentially a bearish consolidation pattern as opposed to a bullish reversal pattern. So again, there's tons of information on these on the internet. I would highly recommend you taking a look and just educating yourself about them as they are great high-risk reward trades when they're traded properly. So thank you guys so much for joining. And again, if you have any questions or comments below please just reach out, leave a comment and I'd be happy to respond to it. So thank you guys so much for joining and I hope you have a great day. Thanks so much. Bye.