In this daily bar chart of WDAY, below, we can see that prices did decline into early June, but reversed to the upside. WDAY has not made a new high and the indicators are still not robust. If you look closely, you can see that the trading volume was heavier on the decline at the end of May than on the rally in early June. The On-Balance-Volume (OBV) line picks up in early June, but it is not leading to new highs as the OBV line can sometimes do. The 12-day price momentum study still shows a long bearish divergence.
In this weekly Japanese candlestick chart we can see some developing weakness in the indicators. First, we want to point out the upper shadows above $210 - on a weekly basis sellers of WDAY are rejecting the highs. WDAY is above the rising 40-week moving average line - maybe too far above. The weekly OBV line rose from October to February, but it has struggled since then. The 12-week price momentum study shows that momentum has been weakening all year.
In this Point and Figure chart of WDAY, below, we can see a potential downside price projection of $161. A considerable risk.
Bottom line strategy: when you make forecasts based on the charts and indicators you can sometimes feel like the boy who cried wolf. The price action and indicators continue to warn of a downward reaction.