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Workday (WDAY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, WDAY broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Over the past four weeks, WDAY has gained 9.9%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
Looking at WDAY's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 27 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch WDAY for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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