Workday Stock Jumps 3.87% to $242.66 Nearing Key $243 Resistance Level

Workday (WDAY) closed at $242.66 on September 22, 2025, rising 3.87% for the session and marking a two-day consecutive gain totaling 3.92%. This upward momentum occurred near a critical technical resistance level, setting the context for our technical assessment.
Candlestick Theory
Recent sessions show a bullish reversal pattern emerging near the $230 support zone, validated by the September 22 candle’s long body engulfing the prior three sessions’ range. Key resistance is evident at $243.07 (September 22 high), which aligns with the late-May swing high. Support crystallizes near $230.70-$231.00, reinforced by multiple tests in mid-September. The rejection from $230 with consecutive green candles signals buyer conviction, though a close above $243 is needed to confirm breakout validity.
Moving Average Theory
Workday’s moving averages exhibit a bullish alignment, with the 50-day MA crossing above the 100-day MA in late August. The current price ($242.66) trades above all three key averages, confirming the dominant uptrend. The converging 100-day ($232) and 200-day MA ($238) create a dynamic support zone. However, the marginal premium over the 200-day MA leaves room for consolidation, with sustained trade above $240 needed to maintain bullish momentum.
MACD & KDJ Indicators
The MACD histogram shows strengthening positive momentum, with the fast line accelerating above the signal line after a mid-September convergence near zero. Simultaneously, the KDJ’s %K (82) and %D (75) penetrate overbought territory, though without bearish divergence. This concurrence suggests near-term exhaustion risk after the sharp rally but lacks classical reversal signals. Traders should monitor for MACD line flattening or KDJ bearish crossovers as caution flags.
Bollinger Bands
Bands contracted notably through September 15-19 (Bandwidth dropped 18%), preceding the decisive breakout above the 20-day average. Price now presses the upper band ($244) with two consecutive closes outside the band, historically triggering minor pullbacks. The 2-standard-deviation bandwidth expansion signals increased volatility, typically supportive of trend continuation after successful breakouts, provided the price maintains above $237 (mid-band support).
Volume-Price Relationship
The breakout occurred on 4.62 million shares, 22% below the 10-day average. This divergence raises sustainability concerns, despite the price surge. However, the September 17 rally (7.25% on 11.66M shares) established a high-volume support anchor near $234. Volume must expand beyond 5.5M shares on upward continuations to validate institutional participation. The absence of selling climaxes in the swing suggests distribution hasn’t occurred.
Relative Strength Index (RSI)
The 14-day RSI (71) breaches the overbought threshold, rising sharply from 55 two sessions prior. Historical reversals occurred near RSI 75 during May peaks, warranting caution. Current levels combined with Fibonacci resistance increase near-term pullback probability. Traders should watch for bearish divergence on any new highs as an early reversal signal.
Fibonacci Retracement
Using the $272.07 (May 22 high)-$214.60 (August 12 low) swing, key levels emerge at $236.55 (38.2%) and $243.33 (50%). Recent consolidation respected the 38.2% level as support, while the current rally stalls precisely at the 50% retracement. Confluence with horizontal resistance at $243 makes this a critical breakout point. A decisive close above $243 would target $250.12 (61.8%), while failure may retest $236-$238 support.
Confluence and Divergence Notes
Notable confluence exists at $243, combining Fibonacci resistance, psychological round number, and Bollinger upper band. Similarly, the $230-$231 zone integrates candlestick support with the 100-day MA. The primary divergence emerges between accelerating price momentum and lagging volume, suggesting caution about continuation without volume confirmation. No significant inter-indicator divergences are present, supporting the prevailing bullish structure despite overbought conditions.