Workday, Inc. (WDAY​) provides cloud-based enterprise software targeted to businesses seeking management of financial and human resources activities. The stock closed Tuesday at $114.76, up 73.6% year to date and solidly in bull market territory at 89.9% above its post-election low of $65.79 set on Dec. 30, 2016. The stock set its all-time intraday high of $116.89 on Nov. 27.

Analysts expect Workday to post earnings per share of between $1.27 and $1.29 when it reports results after the market close on Nov. 29, and most analysts anticipate that the company will beat this estimate on solid year-over-year earnings and revenue growth. JPMorgan Chase & Co. (JPM​) likes Workday as one of its plays in artificial intelligence. Workday's AI initiatives began two years ago and provide predictive applications for identifying trends in employment turnover and forecasting financial data. (See also: Workday Stock Breaks Out From Ascending Triangle.)

The daily chart for Workday

Daily technical chart showing the performance of Workday, Inc. (WDAY) stock

Courtesy of MetaStock Xenith

The daily chart for Workday shows that the stock has been above a "golden cross" since March 10, when it closed at $81.63. A "golden cross" occurs when the 50-day simple moving average (SMA) rises above the 200-day SMA, indicating that higher prices lie ahead. This bullish signal remains in play with the stock at $114.76. Note how the 50-day SMA has been a magnet since July 3.

The weekly chart for Workday

Weekly technical chart showing the performance of Workday, Inc. (WDAY) stockCourtesy of MetaStock Xenith

The weekly chart for Workday is positive but overbought, with the stock above its five-week modified moving average of $110.88 and well above its 200-week simple moving average, also known as the "reversion to the mean," now at $84.96. This key average was last tested at $79.48 during the week of Jan. 20, 2017. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 84.92, up from 81.04 on Nov. 24, when it moved above the overbought threshold of 80.00.

Given this chart and analysis, my trading strategy is to buy weakness to my quarterly, annual and semiannual value levels of $104.48, $95.81 and $94.58, respectively, and to reduce holdings on strength to my weekly and monthly risky levels of $116.32 and $118.59, respectively. (For additional reading, check out: Why Google May Need to Buy Salesforce to Beat Amazon.)

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