During Friday's Mad Money program, Jim Cramer told viewers about his game plan for this week. On Tuesday, he said he would be looking for numbers from Workday (WDAY) , which is one of his favorite cloud stocks. Another favorite is Adobe (ADBE) . Let's check out the charts of WDAY.
We looked at WDAY on May 27 and recommended that "Aggressive traders could go long WDAY at current levels risking to $201. The $280 area is our price target for now."
In this updated daily bar chart of WDAY, below, we can see that purchases in late May have been profitable. Prices rallied to just short of our $280 price target. WDAY is retreating a bit and may fill part of the upside price gap made in late August. Prices are trading above the rising 50-day moving average line and above the rising 200-day line. Earlier this month we can see that the 50-day line crossed above the 200-day line for a bullish golden cross buy signal.
The On-Balance-Volume (OBV) line has moved the past year in a bullish direction. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed lower for a take profit sell signal.
In this weekly Japanese candlestick chart of WDAY, below, we can see the price movement of the past three years. The long white candle in August catches your eye. The middle of the candle or around the $250 area should act as support according to Japanese technical analysts. The slope of the 40-week moving average line is positive.
The weekly OBV line has been improving the past three months or so. The MACD oscillator recently gave us an outright buy signal.
In this daily Point and Figure chart of WDAY, below, we can see an upside price target in the $287 area.
In this weekly Point and Figure chart of WDAY, below, we used a five box reversal filter. Here the chart suggests a price target of $487. Not bad.
Bottom line strategy: There are two reasons to take your time as a buyer. One, because WDAY is pulling back and two, because the broad market is weak. Ideally we could see WDAY decline to the $250 area.
