There's only one group of stocks that have the growth money managers need, Jim Cramer wrote on Monday, and it's the cloud stocks. Everyone assumed that Microsoft Corp.'s (MSFT) strong quarter meant it was taking cloud market share, he said, but that wasn't the case. Cramer was bullish on a number of names, including ServiceNow Inc. (NOW) and Adobe Inc. (ADBE) , but let's focus Workday Inc. (WDAY) here on Tuesday morning.
In this daily bar chart of WDAY, below, we can see that prices corrected lower into an October low and have made a six-month base pattern from August. Prices are challenging the highs of August with our favorite indicators in a bullish alignment. Prices are above the rising 50-day moving average line and above the bottoming 200-day moving average line. The trading volume was heavy in October at the low and also strong in December on the retest pullback. The On-Balance-Volume (OBV) line has moved up strongly from the middle of December, telling us that buyers of WDAY have turned more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and pointed higher.