Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) EVR, BCEI, SWKS, CTAS, DLPH, GRMN, LEG, NWL

(bearish ideas) DFT, COH


Splunk, Inc. - SPLK - close: 35.08 change: +0.58

Stop Loss: 33.75
Target(s): 39.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 14, 2013
Time Frame: exit PRIOR to earnings on Feb. 28th
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
SPLK is in the application software industry. Shares appear to be breaking out from a multi-week sideways consolidation. The stock has definitely been showing some relative strength the last few days. SPLK is currently testing resistance at the $35.00 level. A breakout here could spark a short squeeze. The most recent data listed short interest a 16% of the 55.6 million share float.

I am suggesting a trigger to launch bullish positions at $35.30. if triggered our target is $39.50.

Trigger @ 35.30

Suggested Position: buy SPLK stock @ (trigger)

Annotated chart: