Workday (WDAY) Breaks Through Major Resistance Level With Market Rally
Workday, Inc. engages in the development of enterprise cloud applications for finance and human resources. It delivers financial management, human capital management and analytics applications designed for companies, educational institutions and government agencies.
Take a look at the 1-year chart of Workday (WDAY) below with the added notations:
Chart of WDAY provided by TradingView
WDAY had formed an important level of resistance at the $162.5 (yellow) mark during the course of the past couple of months. The stock tested that level multiple times before finally breaking above it yesterday. That breakout should lead to another leg higher for WDAY.
The Tale of the Tape: WDAY broke a key a level of resistance at $162.5. A long trade could be entered now, or on a pullback down to the $162.5 area, with a protective stop set below the level of entry.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT
Do not trade options until you watch my urgent message: