SAN FRANCISCO – May 25, 2017 – Splunk Inc. (NASDAQ: SPLK), provider of the leading software platform for real-time Operational Intelligence, today announced results for its fiscal first quarter ended April 30, 2017. First Quarter 2018 Financial Highlights Total revenues were $242.4 million, up 30% year-over-year. Total billings were $242.8 million, up 30% year-over-year.GAAP operating loss was $97.5 million; GAAP operating margin was negative 40.2%. Non-GAAP operating loss was $2.8 million; non-GAAP operating margin was negative 1.2%. GAAP loss per share was $0.73; non-GAAP loss per share was $0.01.Operating cash flow was $41.4 million with free cash flow of $35.8 million. “Organizations everywhere are at the center of a data-driven world and Splunk enables success by turning massive data into answers and action,” said Doug Merritt, President and CEO, Splunk. “We are pleased that organizations continue to adopt the Splunk platform on-premises, in the cloud and in a hybrid environment. This continued adoption, flexible deployment and our strong app ecosystem is helping us deliver on our goal of increasing customer success.”(Full Report on Splunk.com)2017 has been a strong year so far, with price rallying from around 51 at the beginning to the year to about 69 in May before the recent correction. Let's take a look at the daily chart:Splunk (SPLK) Daily Chart(click to enlarge)Breakout:- First of all, we should acknowledge that the resistance around 65-66 was clearly broken in April.- The RSI also reflects a bullish market after it tagged 70 and held above 40.- The fact that price held above the 200- and 100-day simple moving average also bodes well for the upside.- The thing is, this bullish breakout has not been tested until this second half of May when price retreated from around 69. Key Support:- The earnings report was decent, but it is apparent that the market was anticipating better forward guidance. - Instead, the market sold SPLK after the disappointing guidance. - Now, the most important support is around 60, a psychological level, but also at a cluster of support factors.- There is a rising trendline, the 200- and 100-day simple moving average (SMAs), and a previous support pivot. - Meanwhile, the RSI is around 40, so if the market is still bullish, its likely to turn up soon. - A break below 60, with the RSI below 40, could be a signal of false bullish breakout, which would open up a bearish outlook at least to a late 2016 low around 52.