Shares of Workday Inc. (WDAY) have been working higher since our last review, where we said, "If you are long WDAY you are in the driver's seat. I would raise sell stop protection...while looking for $114 and then possibly $140 as price targets." With our $114 price target now within relatively easy reach, a fresh look at the charts is warranted.
Let's look at our usual chart package of a daily chart, a weekly chart and a Point and Figure chart.
In this daily bar chart of WDAY, above, we can see the upside breakout to new highs in the price action from yesterday and today. Prices are above the rising 50-day moving average line after a test of the line earlier this month. The price of WDAY is comfortably above the rising 200-day line. The last test of this longer-term indicator was in March and April.
The daily On-Balance-Volume (OBV) line has been rising since the beginning of 2017, and its rise confirms and supports the advance as it shows that buyers of WDAY have been more aggressive for the past eight months. The daily Moving Average Convergence Divergence (MACD) oscillator has been above the zero line, or in bullish territory, since late April. This indicator is bullish with its fresh go-long signal earlier this month.
In this weekly chart of WDAY going back four years, we can see a spike top in early 2014 and a V or spike bottom in early 2016. The 40-week moving average line turned positive around mid-2016 and remains in a bullish position. There is little resistance above the market.
The weekly OBV line has been bullish for the past four years -- rising the entire time, with only short and shallow dips. Investors in WDAY have been steady accumulators of the shares. The weekly MACD oscillator in the lower panel looks like it is turning up to a fresh outright-buy signal.
In this Point and Figure chart of WDAY, above, there is a consolidation area from $106.54 down to the mid-$90s. There is a good amount of volume associated with the zone from the volume-at-price indicator on the left side of the chart. The width of the consolidation gives us an upside price target of $124.77.
Bottom line: For three months, WDAY was unable to successfully break out over $105. The chart resistance around $105 is gone, and the level will probably act as support going forward. We have price targets of $114, $124 and the $140 area. A close below $100 would upset the bullish case.