Shares of Workday, Inc. (NASDAQ:WDAY) are giving back some of Friday’s gains. They rallied almost 6% after posting a strong earnings report. Now they are testing an important resistance level and could be on the verge of a breakout. This is why Workday is the Stock of the Day.
The term ‘market memory’ refers to how certain price levels can retain their significance for a long time. It could be months or even years.
As you can see on the chart, this has been the case with the $205 level for Workday. It has been important since April 2023. It was resistance then.
Some of the people who sold came to regret doing so when the resistance broke and the price headed higher.
A number of them decided to repurchase their shares if they could eventually do so at the selling price. As a result, when the shares fell back to this level in October 2023, they placed buy orders.
The large quantity of these orders created support at the former resistance level.
When the shares rallied, many of the people who sold at support regretted it. Some decided to buy back their shares if they could get them at the selling price.
When Workday fell back to $205 in the summer of 2024, they placed buy orders. This created support at the level again.
Similar dynamics occurred in April and August 2025.
When this support level broke in January, many of the people who bought shares at it regretted doing so. Some vowed to sell at break-even if they could eventually.
Now that Workday has rallied back to $205, they are placing sell orders. These orders have created resistance.
Successful traders understand how important psychology is in the markets. Remorseful sellers can create support. Remorseful buyers can create resistance.
This understanding creates profit opportunities.
Image: Shutterstock
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