In his last "Executive Decision" segment of Mad Money Monday night from the West Coast, Jim Cramer sat down with Aneel Bhusri, co-founder and CEO at Workday, Inc. (WDAY) . Shares of Workday, a human resource software provider, fell 4.6% by the close of trading Monday.
Bhusri noted that Workday has no exposure to China or the trade war and he's not expecting to feel any impact. Overall, he said businesses continue to migrate to the cloud faster than expected and new companies, like Workday, have proven to have the best solutions. Workday is also active in the higher education sector, a market Bhusri called under-served but very receptive to new technologies.
Finally, when asked about his goal to hit $10 billion in revenue, Bhusri noted that he thinks the company can get there organically, but he's not opposed to one or two additional acquisitions to help accelerate that process.
Let's check out WDAY's charts to round out our analysis.
In the daily bar chart of WDAY, below, we can see that prices bottomed in October/November of last year and launched a strong rally that is still going. WDAY is trading above the rising 50-day moving average line as well as the 200-day line. Trading volume has slowed from early December but that has not stopped prices from moving higher.
The daily On-Balance-Volume (OBV) line has moved higher with the price action from late June. The past three months the OBV line has leveled off.
The Moving Average Convergence Divergence (MACD) oscillator shows a pattern of lower highs from December or February and suggests that the strength of the uptrend on WDAY has been waning.
In the weekly bar chart of WDAY, below, we can see that prices have been in a strong uptrend the past three years. Prices based around the $70 area back in 2016 and soared to the $200-$210 area in recent weeks. WDAY is trading above the rising 40-week moving average line. The volume of trading looks like it increased from early 2017 to the end of 2018.
The weekly OBV line shows a long sideways trend but new strength from October. The weekly MACD oscillator has turned down to a take profits sell signal in the past three months.
In this Point and Figure chart of WDAY we can concentrate on just the price action and reversals ignoring volume and time. The software is projecting an upside price target of $227.
Bottom-line strategy: WDAY could either trade sideways between $180 and $210 for a while or a trade at $209.59 could start further gains to the $227-$230 area in the weeks ahead. A close below $180 would be my risk point on existing or new longs.