ITMS
7 years ago
Technical Trade Lesson: Weekly Outside Reversal Pattern
Workday Inc (WDAY:NASDAQ) is a leading provider of enterprise cloud applications for finance and human resources. The stock recently topped out on November 27, 2017 at $116.89 a share. Since that high pivot, the stock has declined sharply. Last night, the company reported earnings and the stock is falling lower today by $2.54 to $104.00 per share. The pattern forming on the weekly chart is what we call an outside reversal pattern. This is usually a very bearish pattern that indicates further downside is possible in the coming weeks. Traders should realize the stock is short-term oversold on the daily chart already, so there could be some minor bounces or positive trading days in the stock. But please note, the weekly reversal pattern that has formed is not a sign of strength. This pattern will generally indicate more weekly chart selling down the road.
So where are the support levels for WDAY stock? There are several important support levels coming up. The first support level that I see is the 200-day moving average at $98.42. This moving average will be major daily chart support if price trades directly into the level. Should price consolidate above the 200-day moving average then that area will become minor support. In other words, watching the pattern develop is extremely important, you must see how a stock trades into a particular support level. The second major support level will be around the $95.00 area. This is where the 50-week moving average is located. This will likely be a major support level when tested as long as price comes directly into that support level. The next major support area for WDAY stock will be around the $90.50 level. This important area is where the stock broke out in May 2017. If you have been reading my work over the years than you know that prior breakout levels are often major chart support when retested. Again, it is very important to see how the stock trades into that level, the chart pattern is always critical and it can change the odds of the trade.
Nicholas Santiago
InTheMoneyStocks
Pro-Life
8 years ago
Insiders are dumping this month... WDAY... also this:
Jim Cramer Gives His Opinion On Chipotle, Salesforce And McDonald's
6:31 am ET August 24, 2016 From TDAmeritrade news...
Jim Cramer said on CNBC's Mad Money that when the food poisoning incident happened to Chipotle Mexican Grill, Inc. (NYSE: CMG), he advised his viewers that it has to pass 18 months before the stock becomes a buy again. That period hasn't passed yet and Cramer wants his viewers to wait before buying the stock.
Workday Inc (NYSE: WDAY) is going to report earnings this week and Cramer is concerned because of a recent downgrade.
He added that he sees no evidence that salesforce.com, inc. (NYSE: CRM) is going to have a soft quarter.
McDonald's Corporation (NYSE: MCD) could pull back to $110. If it gets there, Cramer would be a buyer of the stock.
ScotiaNostra
12 years ago
VM WARE looks the best of this lot ... at least they´re making money and EMC is buying up their stock. PPS has retrenched to levels of 18 months ago ... but the stock is expensive for your average Joe.
Workday should announce "earnings" at the end of Feb. or early Mar. Should prove interesting, since their competitors are sitting on a head of a pin, trying to get positive earnings themselves(SAP and CRM-accident, also waitng to happen). ORCL makes money as they are well entrenched. There are other cloud or is it clown plays that are struggling. VM Ware comes to mind-they lost 20% in PPS recently.
And AMZN is going up on the hope that their streaming video services and some other ventures will pay-off. How long the earnings are absent provides the clue to how long before it pulls into a crash dive.
I take the ridiculous broker predictions of $57, being just them trying to get their IPO customers out, before the big 50% crash. The idea that they could raise money is a joke.
sluicer
12 years ago
Workday should announce "earnings" at the end of Feb. or early Mar. Should prove interesting, since their competitors are sitting on a head of a pin, trying to get positive earnings themselves(SAP and CRM-accident, also waitng to happen). ORCL makes money as they are well entrenched. There are other cloud or is it clown plays that are struggling. VM Ware comes to mind-they lost 20% in PPS recently.
And AMZN is going up on the hope that their streaming video services and some other ventures will pay-off. How long the earnings are absent provides the clue to how long before it pulls into a crash dive.
I take the ridiculous broker predictions of $57, being just them trying to get their IPO customers out, before the big 50% crash. The idea that they could raise money is a joke.
sluicer
12 years ago
One of the all-time bubble valuations. This ranks up there with the lunacy of the late 90's when Mark Cuban's company with less than $100 million in sales was bought for $ 5 BILLION.
40 times sales for WDAY. For the current quarter, sales aren't expected to grow more than 15% above last quarters and they lose half of every dollar they get in sales. $9 billion market cap when they lose $40 million per quarter. Little prospect it will improve anytime soon or ever.
Just for the record, the lock-up isn't as far out as some think. The B commomn can be converted at anytime and then be allowed to be sold, so in effect the majority of shares can be sold at anytime. Check company reports for that.
They won't be able to borrow any money or sell any stock. They will be lucky to get through the next 18 months without going under. Everytime time they bid a contract, Larry Ellison, of Oracle is sitting there, forcing them to underbid. That is why they are losing so much money and will continue to do so. The founders of Workday, also founded and sold Peoplesoft to Ellison in a hostile takeover. He vows to trash Workday. See the Yahoo article about his crowing about Oracle beating them in the US and shutting them out in the EU.
http://finance.yahoo.com/news/larry-ellison-says-cloud-beating-231400009.html