Workday (WDAY) is slated to tell their shareholders how they did in the past three months after the close of trading Tuesday. Over the last two years, WDAY has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time. Will this time be different?
Let's check out the charts and indicators.
In this daily bar chart of WDAY, below, we see a weak picture. Prices made a new low for the move down in early November. Prices bounced back slightly after this new low but gravity has pulled prices back down and below the 50-day moving average line. The slope of the 200-day line is bearish and the average intersects up around $175.
The On-Balance-Volume (OBV) line shows weakness from early August telling us that sellers of WDAY have been more aggressive than buyers the past three months. The daily Moving Average Convergence Divergence (MACD) oscillator is slightly below the zero line in sell territory.
In this weekly Japanese candlestick chart of WDAY, below, we see a bearish chart. Prices are in a longer-term downward trend as WDAY trades below the declining 40-week moving average line. The trading volume has been more active since May but it has not produced a price recovery.
The OBV line has been weak the past two years. The MACD oscillator is bearish but improving.
In this daily Point and Figure chart of WDAY, below, we can see a downside price target of around $121.
In this second Point and Figure chart of WDAY, below, we used weekly price data. A price target of $123 is shown
Bottom line strategy: I have no special knowledge of what WDAY is going to report this evening but putting this news aside, the charts and indicators are bearish. Avoid the long side of WDAY as further declines are possible.
