In his first "Executive Decision" segment of Mad Money Wednesday evening, Jim Cramer spoke with Aneel Bhusri, co-founder and co-CEO of Workday (WDAY) , the HR software provider.
The company just posted accelerating revenue growth up 17% to $1.03 billion.
Bhusri explained that during the pandemic companies were focused on their workforce and making sure they were okay. Now the CFO office is back in full force and companies are again focused on their financials, reporting and acquisitions.
As a result, that side of Workday's business has been remarkably strong.
People are starting to travel again as COVID restrictions are being lifted, Bhusri added, and that's helping them meet with even more customers and prospects.
Bhusri also commented on their own hiring practices at Workday. He said Workday has shifted its recruiting to look harder at minorities, veterans and caretakers that are re-entering the workforce. "We're going to where the talent is," he said, and it's making a difference.
Let's check out the charts of WDAY again. Back on March 1 we wrote, "Prices are likely to bounce to the upside this morning but the peak made around the middle of February is likely to stand for a while. I don't know if prices will in fact decline to the Point and Figure target of $208 but I would be prepared for a deeper correction unfolding in the weeks ahead."
In this daily bar chart of WDAY, below, we can see that prices have been more on the defensive since early March and made new lows for the move down this month. WDAY has been testing the rising 200-day moving average line this month but is now back above it. The declining 50-day moving average is overhead but nearby and a close above it will be a positive.
The On-Balance-Volume (OBV) line shows a rise over the past 12 months with a fresh move higher starting this month. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside for a cover shorts buy signal.
In this weekly Japanese candlestick chart of WDAY, below, we can see two large lower shadows below $225 telling us that traders have been rejecting the lows. The slope of the 40-week moving average line is positive and prices are moving to close back above it.
The weekly OBV line has been in a decline since October but we can see an "uptick" this month. It will take a few more weeks to see if this move up on the OBV line is a bullish reversal. The MACD oscillator is pointed down but it has begun to narrow.
In this daily Point and Figure chart of WDAY, below, we can see a potential upside target of $281.
Bottom line strategy: Aggressive traders could go long WDAY at current levels risking to $201. The $280 area is our price target for now.
