Workday (WDAY) is up sharply in trading Wednesday in reaction to new coverage by an analyst at a regional brokerage firm. The HR software and services firm was started with a buy rating and a $300 target price. Let's check out the charts.
In this daily bar chart of WDAY, below, we can see that prices have moved in a choppy, but higher trading range the past 12 months. Buyers have come in at higher and higher lows, but the top end of trading has remained the $280 area.
Prices are trading above the rising 50-day and bullish 200-day averages. The On-Balance-Volume (OBV) line has risen the past year telling us that buyers of WDAY have been more aggressive. This supports and confirms the advance. The Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside for a new buy signal.
In this weekly Japanese candlestick chart of WDAY, below, we can see twin lower shadows that suggest the lows are being rejected and the path of least resistance is up. The 40-week moving average line is improving. The weekly OBV line shows improvement from May and the MACD oscillator has not crossed to the downside (yet?).
In this daily Point and Figure chart of WDAY, below, we can see a $288 price target.
In this weekly Point and Figure chart of WDAY, below, a $374 target is being projected.
Bottom line strategy: Try to buy WDAY as close to $260 as possible. Risk to $242 for now. Add on strength. The $288 area is our first target. The round number of $300 is next.
