Workday Slips 0.23% As Technicals Show Persistent Bearish Pressure Below Key Averages

Workday (WDAY) declined 0.23% in the most recent trading session, closing at $222.88 after fluctuating between $221.07 and $227.30 on moderate volume. This analysis examines key technical dynamics across seven frameworks.
Candlestick Theory
Recent candlesticks reveal consolidation near the $220-$222 support zone. The August 22nd session formed a hammer pattern (low: $211.31, close: $221.27) suggesting temporary buying interest, but subsequent candles show rejection near $225-$227 resistance. The long upper wick on August 25th (high: $225.13, close: $223.39) indicates persistent selling pressure. Critical support converges at $211.31 (August 22 low), while resistance firms at $227.30-$228.10 (recent highs) and further at $231.72.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit bearish sequencing (200DMA > 100DMA > 50DMA > price). Current price remains below all key averages, confirming the downtrend. The 200DMA near $245 provides major resistance, while the 50DMA around $230 acts as interim ceiling. This configuration suggests continued bearish momentum unless price reclaims the 50DMA with conviction.
MACD & KDJ Indicators
MACD trends below its signal line in negative territory, reinforcing bearish momentum despite a slight convergence in late August. KDJ oscillators hover near oversold levels (K-line: 35, D-line: 38) but show no bullish crossover. Divergence emerged on August 22nd when price made a lower low while KDJ registered a higher low, hinting at potential exhaustion in selling pressure. Both indicators currently lack reversal confirmation.
Bollinger Bands
Volatility expanded notably during the August 22nd sell-off (bands width: +15%). Price currently trades near the lower band ($220) with bands contracting (-7% width change), suggesting reduced volatility and potential consolidation. Sustained trading below the 20-day moving average ($225) keeps the bears in control. A close above the middle band is needed to signal stabilization.
Volume-Price Relationship
Down days have frequently occurred on above-average volume, including August 22nd (volume: 8.2M, -2.77%) and August 11th (volume: 5.1M, -3.77%), confirming distribution. The August 25th recovery (volume: 5.0M, +0.96%) showed inadequate buying interest compared to selling volume. Volume divergence during minor rebounds questions sustainability of upward moves.
Relative Strength Index (RSI)
The 14-day RSI reads 41, recovering from oversold territory (RSI 28 on August 22) but remaining below neutrality. While not oversold currently, the indicator’s failure to breach 50 during recent rebounds indicates weak momentum. Notable bearish divergence occurred in late July when RSI peaked at 62 while price formed lower highs, foreshadowing the August decline. RSI below 50 continues to favor bears.
Fibonacci Retracement
Drawing from the major swing high of $294.00 (December 9, 2024) to swing low of $205.33 (April 7, 2025), key retracements emerge: 23.6% ($226.25), 38.2% ($239.20), and 50% ($249.67). Current price struggles below the 23.6% level, reinforcing its resistance significance. A decisive break above $226.25 could open path toward $239.20, while failure risks retesting the $211.31 support. Confluence exists between the 23.6% Fib and recent price rejection near $225.
Confluence and Divergence Notes
Strong bearish confluence appears near $226-$227, where Fibonacci resistance, recent highs, and the descending 50DMA converge. Bullish divergences include KDJ’s higher low during August’s price breakdown and Bollinger Band contraction suggesting selling exhaustion. However, these are counterbalanced by volume confirmation of downtrends and sustained price positioning below key MAs. The RSI’s inability to hold above 50 remains a critical watchpoint for trend validation.