timwest
Short

Workday Inc WDAY - Daily - Early call to short a little higher

NYSE:WDAY   WORKDAY INC
247 7 6
Following up on Barker's chart of WDAY             ( Workday Inc             ), I thought I would add my trade onto the back end of his trade.

Here's my reasoning:
30 TIMES SALES = Explosive growth expected for this $500 million in annual revenues "cloud" computer services company. Sporting a monstrous $15 billion market cap with a tiny $500 million in revenue is an incredible valuation only afforded because of the stock market and the way that stocks "FLOAT" on the most recent buyers and sellers flipping shares back and forth to each other. If you closed the market for a year and asked everyone to adjust their positions accordingly before such an event, then I think you would see a very different price for the shares of WDAY             . Given the insidious valuation and the likelihood of a rally from this oversold condition, be prepared to sell short on the next squeeze up to the 88-92 level and look for new 52-week lows in the not too distant future. Risk 3 ATR's from entry.
Tim

9:03AM 6/12/2014 81.20 last WDAY            
Updated 1:12PM 6/16/2014 85.35 last WDAY            
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
It hit the top of the 88-92 sell short zone and now is under 2 previous day's lows. The triangle is still forming and the price keeps squeezing into the relentless advance....
Reply
Not cup and handle?
+1 Reply
I don't think so. But by who's definition of Cup&Handle? The original definition by William O'Neill is my choice. To be a William O'Neill cup and handle, the right side of the cup has to come back up to the top and then form the handle. It is some form of accumulation, but time will tell. You could make another chart and mark it up.
Reply
2use timwest
Indeed, depends how you look at it or where a cup starts. I don't take it 100% by the definitions. so i see a possible cup from 04.04 - if looking from 03.04, then the right side did not indeed reach the top. But i got my answer in your comment :) thanx!
Reply
2use 2use
Although, if cup and handle...it ends up nicely at 106 where we have resistance
Reply
Good info Tim. And I like the short setup within this channel:
snapshot


I'm not sure that this upward channel will fail though.
+1 Reply
Your target reached today. Great trade.
Reply
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Support Priority Support Report Issue Ideas Published Followers Following Private Messages Chat Sign Out