Splunk stock rises on report activist investor Starboard has 5% stake

Splunk (SPLK.US) stock jumped briefly by 10.0% following a Wall Street Journal report that activist investor Starboard Value has taken a near 5% stake in the software maker. Starboard is reportedly pushing the company's board to implement several changes in order to boost Splunk’s stock price, which plunged nearly 70% from the 2020 high.

Splunk (SPLK.US) stock fell sharply in recent months, however it seems that buyers managed to halt declines around major support at $70.80, which coincides with 78.6% Fibonacci retracement of the upward wave launched at the beginning of 2016. As long as price sits above this level, upward correction may be launched. The nearest major resistance to watch is located at 61.8% retracement around $105.25. Source: xStation5