We commented on Workday (WDAY) just recently, where we concluded that, "After this possible "breakout shakeout," we could see WDAY move substantially higher with $140 a possible longer-term upside objective."
With WDAY putting in a strong upside performance so far today, this is a good time to take a fresh look at the stock. Let's look at some updated charts and indicators.
In this daily chart of WDAY, below, we can see that prices corrected sideways around $100 instead of making a pullback to the breakout point. While I am slightly disappointed that Mr. Market decided not to listen to me, it shows me that buying interest in WDAY was stronger than I anticipated. A sideways correction instead of a pullback is a sign of strength, in my opinion. Buyers are anxious to put money to work at the unchanged level instead of on a dip.
WDAY remains above the rising 50-day and 200-day moving averages. The daily On-Balance-Volume (OBV) line has continued to rise to new highs confirming the rally and telling us that buyers continue to be aggressive. The Moving Average Convergence Divergence (MACD) oscillator remains in a bullish mode and pointed higher.
In this weekly bar chart of WDAY, below, we can see how prices have stayed above the 2016 high and could challenge the late 2013/early 2014 highs. The 40-week moving average line is pointed up as is the weekly OBV line. A new high for the move up in the OBV line would be welcomed. The weekly MACD oscillator is in a bullish pattern above the zero line.
In this Point and Figure chart of WDAY, below, we can see the straight-up rally in price -- no pullback of $3 to give us a column of O's. The chart we showed last month projected a potential rally to $140 and we selected this chart for its interim price target of $114.
Bottom line: If you are long WDAY you are in the driver's seat. I would raise sell stop protection to a close below $98 while looking for $114 and then possibly $140 as price targets.