Workday Inc (WDAY) Stock Has a Chart You’ll Love

WDAY stock is an easy long play thanks to this highly bullish pattern

Shares of enterprise cloud applications company Workday Inc (NYSE:WDAY) are higher to the tune of more than 45% year-to-date. While I’d typically be the first to admit that chasing a stock like this is a low-probability strategy, WDAY stock currently sports one of the most bullish technical patterns that should reward both investors and traders

Before discussing the pattern and digging into the charts, I would be remiss not to make you aware of Workday’s next earnings announcement, scheduled for June 1.

From a trading perspective, this date could lead to a further boost in WDAY stock, or a retracement lower in the stock that would need to be bought.

All of this depends on how the stock acts in the next couple of weeks.

When it comes to technical analysis, there’s no shortage of “patterns” one can construct either bullish or bearish trades around. However, in my nearly 20 years of trading experience, I can tell you that not all patterns are created equal. Some are more likely to lead to profitable trades than others.

One of the highest-probability technical patterns is called the “inverse head-and-shoulders pattern,” which has bullish implications for the asset in question.

Workday currently has one of these patterns on display.

WDAY Stock Charts

On the multiyear chart, we see that WDAY recently broke past the black horizontal (or slightly diagonal) line. This line is what we refer to as the “neck line” of the pattern.

Note the three blue bubbles I marked on the charts. Those from left to right are the left shoulder, head and right shoulder respectively (hence the inverse head-and-shoulders pattern).

Also note that WDAY stock had several attempts at trying to overcome this line of resistance around the $90 mark. But this week, it finally managed to break higher.

Более часто чем не, большой-изображение секционных течением времени приводит к регистрации вернуться к линии пробоя. В данном случае, это означает, что площадь 90$. Этот тип регистрации может быть в картах после предстоящего анонса заработка рабочего дня или раньше, в зависимости от того, как реагирует фондовый период до 1 июня.

Независимо от того, через нормы объектив, это "бычий" график, которые в конечном итоге должны найти его легко перемещать в $120С и выше.

На дневном графике мы видим, что на этой неделе пробоя и аккуратно толкнул запас выше 90 долларов.

While the move may already be somewhat overbought in the near-term, momentum looks to be on the side of Workday. I don’t want to fight that.

As such, traders could look to establish an initial long position in WDAY stock at current levels to position themselves for much higher gains over time, as per the above chart. Any pullback to the low $90s or high $80s would likely offer another buying opportunity.