In another "Executive Decision" segment of Thursday's Mad Money program, Jim Cramer sat down with Aneel Bhusri, chairman and co-CEO, and Pete Schlampp, chief strategy officer at Workday (WDAY) , the workforce software platform.
The company just announced strong earnings that included 20% accelerating revenue growth.
Bhusri said the cloud is alive and well, and with labor in short supply in many industries, Workday is proving to be a critical tool for many companies.
Workday is extending its reach with the acquisition of VNDLY, a workforce management service that focuses on external workers. Schlampp noted that with VNDLY, they can now manage both internal and external workforces to deliver a complete package.
Bhusri added that with the "great resignation" underway, companies are utilizing Workday's software to gauge sentiment to keep their best employees happy, improve their skill sets through online training, and of course, recruit new workers using the company's recruiting platform.
Let's see what is going on with the charts.
In this daily bar chart of WDAY, below, we can see that prices have traded higher the past 12 months but it has not been a straight road. WDAY gapped higher in late August but retraced the entire gain into early October before resuming its uptrend. Prices have gapped lower today and may weaken further to test or break the rising 50-day moving average line. The 200-day line intersects around $252.
The daily On-Balance-Volume (OBV) line shows a pretty steady rise the past 12 months. The Moving Average Convergence Divergence (MACD) oscillator has turned lower from a lower high - this is a take profits sell signal but also a bearish divergence.
In this weekly Japanese candlestick chart of WDAY, below, we can see an upper shadow telling us that the prices above $300 have been rejected. The slope of the 40-week moving average line is positive but this is a lagging indicator. The weekly OBV line shows improvement the past five or six months but it is well below the highs of last year for a significant bearish divergence.
In this daily Point and Figure chart of WDAY, below, we can see that prices have reached an upside price target.
In this weekly Point and Figure chart of WDAY, below, we can see a potential upside price target in the $423 area. Targets can and do change with the price action.
Bottom line strategy: WDAY could climb back and close up for the day and that would be positive, but I see enough questionable price action and weakening indicators to recommend getting out of longs and standing aside.
