Watch These Workday Price Levels as Stock Tumbles on Disappointing Outlook | Global News Avenue

working days (working day) reported better-than-expected third-quarter results but provided a current-quarter subscription revenue outlook that fell short of Wall Street expectations, sending shares of the human resources and financial software maker tumbling in early trading Wednesday.

During the post-earnings conference call, CFO Zane Rowe told analysts the company continues to face more scrutiny than usual on deals in some parts of the world. However, the company sees opportunity public sector As government agencies focus on promoting economies of scale and improve efficiency.

The stock opened trading on Wednesday down 10% to around $243, bringing its year-to-date decline to 12%.

Below, we take a closer look at Workday’s chart and use technical analysis To determine important price levels that investors may be concerned about.

bearish divergence

Since breaking through above a Descending channelWorkday shares have formed two shares peak on the August-November chart.

It’s worth pointing out that as the second peak produced higher highs, Relative Strength Index (RSI) Shallower highs formed to form bearish disagreementa technical phenomenon that indicates buying momentum is waning.

Let’s analyze Workday’s chart and identify a few important areas that may provide support Amid the earnings-driven sell-off, a key overhead level was discussed to see if the stock will recover.

Important support areas to monitor

First, investors should focus on the $237 area. The region may receive months of support trend line It connects a series of comparable trading levels on the chart from July 2023 to October this year.

If bulls fail to hold this important technical level, shares could drop to around $223, where shares could attract buying interest around a similar price point midway through early September 2023 high swing and late October 2023 swing low.

A deeper decline opens the door for a retest of lower support near $207. Investors can look for long-term buying opportunities close to price in this area horizontal line Linking the notable trough on the chart from October 2023 to June this year to early August bear trap closing price.

Key Spending Levels to Watch

As shares recover, investors should keep an eye on the $279 level. People who buy stocks below 200-day moving average (MA) may look for exit point Close to the recent November high and also closely related to the December high and March high Contrary to the trend top.

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As of the date of this writing, the author did not own any of the securities mentioned.