Labor Day (WDAY) just surpassed the 20-day moving average

Workday (WDAY) reached significant support levels and could be a good choice for investors from a technical perspective. Recently, WDAY broke above the 20-day moving average, indicating a short-term uptrend.

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 for short-term traders because it smoothes price fluctuations and provides more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock’s price rises above the 20-day moving average, the trend is considered positive, while a dip below the moving average can signal a downtrend.

WDAY could be on the verge of another rally after rising 6.8% over the past four weeks. Additionally, the company is currently a Zacks Rank #2 (Buy) stock.

Once investors factor in WDAY’s positive earnings estimate revisions, the bullish case only solidifies. Compared to eleven raised estimates for the current fiscal year, no earnings estimate has been lowered in the last two months, and the consensus estimate has also been increased.

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

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