Workday (WDAY) is a cloud-based human resources and benefits platform. Monday evening the company posted an earnings and revenue beat but the stock price is softer in early trading Tuesday.
What's the story? Let's check out the charts and indicators.
In the daily bar chart of WDAY, below, I can see a less-than-robust picture. Share prices have shown some buying interest in the $140-$130 area in June/July and October/November. The 50-day moving average line is cresting and the 200-day moving average line is still bottoming.
The trading volume looks like it has slowed since June. The daily On-Balance-Volume (OBV) line shows me a slight and uneven rise from June. The Moving Average Convergence Divergence (MACD) oscillator shows weakness in December and February and a bearish divergence when compared to the price action.
In the weekly Japanese candlestick chart of WDAY, below, I can see an improving picture. The shares are trading above the bottoming 40-week moving average line.
The OBV line shows some improvement from September. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of WDAY, below, I can see a potential downside price target in the $171 area.
In this weekly Point and Figure chart of WDAY, below, I can see an upside price target in the $257 area.
Bottom-line strategy: Three of the charts of WDAY, above, suggest weakness but the weekly Point and Figure chart points to higher prices in the longer run. Avoid the long side of WDAY for now but I may recommend the long side in the months ahead. Stay tuned.
