Workday Inc WDAY - Daily - Early call to short a little higher

Following up on Barker's chart of WDAY ( Workday Inc ), I thought I would add my trade onto the back end of his trade.

Here's my reasoning:
30 TIMES SALES = Explosive growth expected for this $500 million in annual revenues "cloud" computer services company. Sporting a monstrous $15 billion market cap with a tiny $500 million in revenue is an incredible valuation only afforded because of the stock market and the way that stocks "FLOAT" on the most recent buyers and sellers flipping shares back and forth to each other. If you closed the market for a year and asked everyone to adjust their positions accordingly before such an event, then I think you would see a very different price for the shares of WDAY . Given the insidious valuation and the likelihood of a rally from this oversold condition, be prepared to sell short on the next squeeze up to the 88-92 level and look for new 52-week lows in the not too distant future. Risk 3 ATR's from entry.

9:03AM 6/12/2014 81.20 last WDAY
Updated 1:12PM 6/16/2014 85.35 last WDAY
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Not cup and handle?
+1 Reply
I don't think so. But by who's definition of Cup&Handle? The original definition by William O'Neill is my choice. To be a William O'Neill cup and handle, the right side of the cup has to come back up to the top and then form the handle. It is some form of accumulation, but time will tell. You could make another chart and mark it up.
2use timwest
Indeed, depends how you look at it or where a cup starts. I don't take it 100% by the definitions. so i see a possible cup from 04.04 - if looking from 03.04, then the right side did not indeed reach the top. But i got my answer in your comment :) thanx!
2use 2use
Although, if cup and handle...it ends up nicely at 106 where we have resistance
Good info Tim. And I like the short setup within this channel:

I'm not sure that this upward channel will fail though.
+1 Reply
timwest Barker
Your target reached today. Great trade.
It hit the top of the 88-92 sell short zone and now is under 2 previous day's lows. The triangle is still forming and the price keeps squeezing into the relentless advance....
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