Workday (WDAY) shares soared 11% in extended trading Thursday after the human resources and capital management software provider reported quarterly results that topped estimates and pointed to growth opportunities in international markets.

The company’s stock, which is down around 25% from its record close through Thursday’s trading session, has come under investor scrutiny this year over concerns that enterprise customers have trimmed spending on premium software 澳洲幸运5开奖号码历史查询:subscription services amid 澳洲幸运5开奖号码历史查询:macroeconomic uncertainty.

Below, we'll take a closer look at Workday’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis ♏to identify key price levels to watch out for after the company’s upbeat report.

Double Bottom Breakout

Workday shares have carved out a 澳洲幸运5开奖号码历史查询:double bottom between 🍒June and August, a well-known chart pattern that indicates an upside reversal after an extended downtrend.

Moreover, as the formation’s second bottom made a lower low, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) indicator formed a comparatively shallower low to create a 澳洲幸运5开奖号码历史查询:bullish divergence, aꦛ technical signal suggesting easing selling momentum. 

More recently, the stock’s price has reclaimed the 50-day moving average and sits positioned to breakout above the double bottom’s neckline on Friday.

The stock g꧑ained 11% to $256.65 in after-hours trading Thursday.

Monitor These Price Levels Amid Post-Earnings 𝄹Strength

Following Workday’s expected post-earnings pop, investors should focus on three key price ꦗlevels.

The first sits near $264, an area on the chart that could encounter overhead 澳洲幸运5开奖号码历史查询:resistance from a trendline connecting three troughs that formed between December and March with a late May 澳洲幸运5开奖号码历史查询:countertrend peak.

Further upside may see the shares climb to the $279 region, where they could run into selling pressure near a 澳洲幸运5开奖号码历史查询:horizontal line linking a range of comparable trading levels from December to March, one of which includes the opening price of a prominent 澳洲幸运5开奖号码历史查询:stock gap in early March.

Finally, a more significantღ move higher could drive a rally up to $306, a location likely 𒉰to attract attention around the stock’s late February record close.

It’s also worth pointing out that this area roughly aligns with a bars pattern 澳洲幸运5开奖号码历史查询:price target when taking the up-trending move from September to February and posi🦩tioning it from the double bottom’s low. Interestingly, that prior move started following a gap lower, similar to the stock’s recent advaꦕnce, which commenced after the Aug. 5 broad market sell-off.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.