I See No Reason to Quit Workday Now

Let's check the charts of WDAY after its beat and as it's working its way higher and higher on the charts.

Workday (WDAY) is up around 11% on Friday morning after the company posted a quarterly earnings beat in the latter part of the week.

I wrote about Workday two months ago and concluded that "Aggressive traders could go long shares of WDAY on strength above $194."

Let's jump right into the charts and indicators.

In this daily bar chart of WDAY, below, I can see it broke out to new highs in late March and then corrected lower the next six weeks. Prices turned higher again and have been rallying ahead of earnings last night. WDAY has gapped higher and has opened the way to further gains. WDAY trades above the flat 50-day moving average line and above the rising 200-day line. Trading volume did not decline much but the On-Balance-Volume (OBV) line made a deep decline in April before turning upwards in early May. The Moving Average Convergence Divergence (MACD) oscillator is back above the zero line for a fresh outright buy signal. 

 

In this weekly Japanese candlestick chart of WDAY, below, we don't have this week's price action plotted but we can use our imaginations. Prices are pushing up towards $220. WDAY trades above the rising 40-week moving average line. The weekly OBV line shows us a bullish rise from September. The MACD oscillator is above the zero line and trying to turn higher after a correction. 

 

 

In this daily Point and Figure chart of WDAY, below, I can see an upside price target in the $265 area.

 

 

In this weekly Point and Figure chart of WDAY, below, a price target of $297 is now displayed.

 

 

 

Bottom line strategy: Traders who are long WDAY should continue to hold those positions. Traders could also go long WDAY today in the $215-$210 area if available. $265 is my price target for now.

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