Splunk (SPLK) recently broke above a year-long range, signaling bullish continuation.I noted last time that SPLK was anchoring above 60, and if can stay above 60, the bullish outlook is valid. However, price fell below 60, signaling a false bullish breakout, and putting pressure back towards 50, the range support. Splunk (SPLK) Daily Chart(click to enlarge)Downside:- Looking at the daily chart, we can see that the bullish breakout in May has not followed through.- Price has been retreating sharply, and with strong volume.- The failure to hold above 60 shows that bulls capitulated.- The range support around 50 is now in sight.- If price pulls back up, let's monitor the 60-62 area. It should hold as resistance if the market is indeed bearish in the short-term.- In the medium and long-term, the market is sideways and bullish. Therefore, at this point, we should limit our bearish outlook to 50, which would be within the context of a sideways market.