Workday Stock Jumps 3.95% As Technicals Signal Bullish Reversal

Workday (WDAY) gained 3.95% in the most recent session, extending its winning streak to two consecutive days with a cumulative 4.39% advance. This positive momentum follows a volatile period, including a -3.77% decline on August 11th where the stock tested the $211.76 support level before rebounding. The price action forms a bullish continuation pattern, with the current recovery pushing against the $223.27 resistance level established on August 11th.
Candlestick Theory
The recent price action shows a bullish reversal pattern near the $211.76 support level. The August 11th session formed a long-legged doji (high: $223.27, low: $211.76, close: $213.69), indicating indecision after a significant decline. This was followed by two consecutive white candlesticks, culminating in a strong bullish candle on August 13th that closed near its high of $223.07. Key resistance resides at $223.27 (August 11th high) and $233.14 (August 7th high), while support is evident near $213 (August 13th low) and $206.77 (August 12th low).
Moving Average Theory
The 50-day moving average (approximately $228) sits above the current price, acting as dynamic resistance. Both the 100-day (~$235) and 200-day (~$245) averages slope downward overhead, reinforcing the broader bearish trend structure. However, the shorter-term 20-day moving average has started to flatten, suggesting potential near-term consolidation. The current price trading below all three major averages indicates persistent bearish pressure, though the recent bounce may signal short-term trend exhaustion.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line converging toward the MACD line from below. While still in negative territory, this suggests weakening downside pressure. Concurrently, the KDJ indicator's %K line (37) and %D line (31) are rising from oversold territory below 30, having recently triggered a bullish crossover. This alignment indicates growing bullish momentum, though both oscillators remain below neutral levels (50), warranting caution.
Bollinger Bands
Bollinger Bands contracted sharply during the August 11th–12th consolidation phase, signaling reduced volatility before the August 13th breakout. The price has now rebounded from the lower band ($213) toward the middle band (20-SMA near $220). Bandwidth expansion during the upside move suggests renewed directional conviction. Sustained closes above the middle band could target the upper band near $230.
Volume-Price Relationship
Volume patterns validate recent price movements, with the August 11th sell-off occurring on elevated volume (5.09M shares), confirming bearish conviction. The subsequent rebound saw declining volume (4.29M on August 12th), but the August 13th breakout occurred on higher volume (3.92M), lending credibility to the bullish reversal. This volume-profile alignment suggests accumulation near support, though follow-through volume is needed to confirm sustainability.
Relative Strength Index (RSI)
The 14-day RSI (currently 43) has rebounded from near-oversold territory (30.5 on August 12th) but remains below the neutral 50 level. While the recovery from oversold conditions supports near-term bullish momentum, the absence of overbought readings (RSI >70) suggests limited upward exhaustion risks. This neutral positioning allows room for additional upside, contingent on continued momentum confirmation.
Fibonacci Retracement
Applying Fibonacci retracement to the May 22nd peak ($272.07) and August 12th trough ($206.77), key levels emerge: the 23.6% retracement at $222, 38.2% at $231, and 50% at $239. The recent rally stalled precisely at the 23.6% resistance ($223.07 close vs. $222 level), indicating technical significance. A confirmed breakout above this level could target the 38.2% retracement near $231, aligning with the July 31st swing high.
Confluence and Divergence Observations
Confluence exists between the Fibonacci 23.6% resistance ($222), the candlestick resistance zone ($223.27), and Bollinger mid-band resistance (~$220), creating a critical technical barrier. Bullish confluence appears in the momentum indicators: the MACD’s reducing bearish momentum and KDJ’s oversold crossover align with volume-supported price recovery. However, a minor divergence exists as RSI hasn’t matched the price’s aggressive rebound, introducing caution. Probabilistically, sustained trading above $223.27 may signal further upside toward $231, while failure here could retest the $211–$207 support zone.