After surging higher in January and February, Workday (WDAY) has become stalled in the past few weeks. In the near term, the chart of WDAY looks vulnerable, but the overall longer-term picture looks promising.
Let's dig a little deeper into the charts and indicators.
In this updated daily bar chart of WDAY, above, we can see a mixed picture with respect to the price action and indicator signals. From a high at the end of February, WDAY has made lower lows and lower highs for a short-term downtrend. WDAY is below the rising 50-day moving average and above the rising 200-day average. The On-Balance-Volume (OBV) moved up in January and February with the price action but has weakened as prices have declined. The momentum indicator in the lower panel shows both a bearish divergence in January and February and a smaller bullish divergence in March.
In this weekly chart, above, we can see WDAY is testing or retesting the positive 40-week moving average line. The weekly OBV line shows a lower high but not a lower low, so it is overall neutral. The MACD oscillator is above the zero line but it looks like it is narrowing toward a possible crossover.
In this Point and Figure chart of WDAY, above, we can see prices declined to a new low at $81 and that a rally to $87 is needed to make this chart bullish again.
Bottom line: WDAY needs to rally above $86 to improve the short-term outlook. The weekly chart will improve with a close above $86 and will be stronger with a close above $90. A close below $80 will weaken both charts.