What to look for $WDAY
Chart analysis
Workday had a big uptrend since the Covid-19 Crash. But as we saw in November 2020- May 2021 there was a head and shoulders formation and price traded pretty much sideways.
Buying side:
-find a lot of support in the red area (9x)
-huge candle with 2 times big wick underneath (bullish)
-above 20+50 SMA
Selling side:
-under 100+200 SMA
-intact downtrend since February
-breakout of a potential triangle formation (violet/white lines)
RSI: not clear
MACD: the daily not clear, weekly tendency to uptrend, monthly t. to downtrend
I next days will be important to watch. What I would be looking for as a buyer is that prices goes above the downtrend line (violet) to get this confirmation of an new uptrend.
The second thing is that we get above the SMA 100 (blue line) and this more than 3 days.
This would be in the range of <240$. It could be your first entry but your stop lost must be very tight to the SMAs. Target could be new ATH (+17%) in a matter of weeks. Profit exit could be the 249$ (Sep. ATH), too.
Second idea would be to invest over the resistance of 249$. It is a 3,5% difference to first idea but I would say a safer play because we would be beyond the September ATH and therefore have a more valuable buy signal. Target would be new ATH (+13,5%).
Alway expect small corrections the way up. They are most likely connected with support/resistance lines I draw.
Fundamentals:
Seeking Alpha article by Gary Alexander
„In my view, Workday's rally is nearing an end. The company has hit a fairly rich valuation at ~11x forward revenue, despite the fact that revenue growth is slowing to the mid-teens and margins are expected to deteriorate following a hiring spree. With a saturated market, I don't see much opportunity for Workday going forward.“
Source:
seekingalpha.com/article/4435064-workday-why-the-stock-rally-is-fading?source=Add to Notes
Workday had a big uptrend since the Covid-19 Crash. But as we saw in November 2020- May 2021 there was a head and shoulders formation and price traded pretty much sideways.
Buying side:
-find a lot of support in the red area (9x)
-huge candle with 2 times big wick underneath (bullish)
-above 20+50 SMA
Selling side:
-under 100+200 SMA
-intact downtrend since February
-breakout of a potential triangle formation (violet/white lines)
RSI: not clear
MACD: the daily not clear, weekly tendency to uptrend, monthly t. to downtrend
I next days will be important to watch. What I would be looking for as a buyer is that prices goes above the downtrend line (violet) to get this confirmation of an new uptrend.
The second thing is that we get above the SMA 100 (blue line) and this more than 3 days.
This would be in the range of <240$. It could be your first entry but your stop lost must be very tight to the SMAs. Target could be new ATH (+17%) in a matter of weeks. Profit exit could be the 249$ (Sep. ATH), too.
Second idea would be to invest over the resistance of 249$. It is a 3,5% difference to first idea but I would say a safer play because we would be beyond the September ATH and therefore have a more valuable buy signal. Target would be new ATH (+13,5%).
Alway expect small corrections the way up. They are most likely connected with support/resistance lines I draw.
Fundamentals:
Seeking Alpha article by Gary Alexander
„In my view, Workday's rally is nearing an end. The company has hit a fairly rich valuation at ~11x forward revenue, despite the fact that revenue growth is slowing to the mid-teens and margins are expected to deteriorate following a hiring spree. With a saturated market, I don't see much opportunity for Workday going forward.“
Source:
seekingalpha.com/article/4435064-workday-why-the-stock-rally-is-fading?source=Add to Notes
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