Workday (WDAY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, WDAY broke through the 200-day moving average, which suggests a long-term bullish trend.

A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.

Shares of WDAY have been moving higher over the past four weeks, up 29%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that WDAY could be poised for a continued surge.

The bullish case solidifies once investors consider WDAY's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on WDAY for more gains in the near future.

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Workday, Inc. (WDAY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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