Workday (WDAY) posted better-than-expected third-quarter results, but provided a current-quarter subscription revenue outlook below Wall Street expectations, sending shares in the human resources and finance software maker tumbling in early trading on Wednesday.

In a post earnings call, 澳洲幸运5官方开奖结果体彩网:chief finance officer Zane Rowe told analysts that the company continues to face more deal scrutiny than usual in some parts of the world. However, the company sees opportunities in the 澳洲幸运5官方开奖结果体彩网:public sector as government agencies focus on driving 澳洲幸运5官方开奖结果体彩网:economies of scale and improving efficiency.

The stock was down 10% at around $243 in the opening minutes of Wednesday's trading session, pushing the year-to-date decline to 12%.

Below, we take a closer look at Workday’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important price🌞 lꦐevels that investors may be watching.

Bearish Divergence

Since breaking out above a 澳洲幸运5官方开奖结果体彩网:descending channel, Workday shares have formed two peaks on the chart between August and November.

It’s worth pointing out that as the second peak made a higher high, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a shallower high to create a bearish 澳洲幸运5官方开奖结果体彩网:divergence, a technical o💫ccurrence that signals weakening buying momentum.

Let’s analyze Workday’s chart to locate several important areas that may provide support amid earnings-driven sell🅰ing and also discuss a key overhead level to watch if the stock makes 𝔉a recovery.

Important Support Areas to Monitor

Firstly, investors should monitor the $237 area. This region could find support from a multi-month 澳洲幸运5官方开奖结果体彩网:trendline that connects a range of comparable trading le🍰vels on the chart from July 2023 to October this year.

The bulls' failure to defend this important technical level could see a fall to around $223, an area where the shares may attract buying interest near similar price points positioned roughly midway between the early September 2023 澳洲幸运5官方开奖结果体彩网:swing high and late October 2023 澳洲幸运5官方开奖结果体彩网:swing low.

A more significant drop opens the door for a retest of lower support near $207. Investors could look for long-term buying opportunities in this area close to a 澳洲幸运5官方开奖结果体彩网:horizontal line that links prominent troughs on the chart from October 2023 to June this year with the early August 澳洲幸运5官方开奖结果体彩网:bear trap closing price.

Key Overhead Level to Watch

Amid a recovery in the stock’s price, investors should watch the $279 level. Those who have purchased shares below the 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA) may look for 澳洲幸运5官方开奖结果体彩网:exit points near the recent November peak, which also closely aligns with the December high and March 澳洲幸运5官方开奖结果体彩网:countertrend top.

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