Workday, Inc. (WDAY) shares rose more than 2% during Tuesday's session after bullish analyst commentary late last week. JMP Securities analyst Patrick Walravens indicated that checks with the company and its partners suggest that the state of business is "really, really good" with strong deal flow. The JMP analyst increased his Q1 estimates and kept an outperform rating on Workday stock with a price target of $220 per share.

Meanwhile, Oppenheimer analyst Brian Schwartz raised his price target from $216 to $225 per share and reiterated his outperform rating on the stock after having industry conversations. The analyst's checks suggest that Workday has "consistently good demand and execution."

Traders will be keeping a close eye on the stock as the cloud-based software company is set to report earnings after the bell today. Consensus revenue estimates call for a 31.6% increase to $814.21 million, with earnings projected to rise 24.2% to $0.41 per share.

Technical chart showing the share price performance of Workday, Inc. (WDAY)
TrendSpider

From a technical standpoint, Workday stock broke out to fresh all-time highs and the upper end of its price channel during Tuesday's session. The relative strength index (RSI) rose closer toward overbought levels with a reading of 61.80, but the moving average convergence divergence (MACD) remains in a bullish uptrend. These indicators suggest that the stock could have a bit more room to run before experiencing consolidation.

Traders should watch for a breakout from upper trendline resistance at the top of its price channel to fresh all-time highs or some consolidation toward the lower end of its price channel before a further move higher. If the stock breaks down from its price channel, traders could see a move to reaction lows of around $180.00, although that scenario appears less likely to occur unless the company reports sharply lower-than-expected earnings.

The author holds no position in the stock(s) mentioned except through passively managed index funds.