This Software Chart Keeps Getting Worse

Pressure across the software industry hasn’t let up, and the market continues to reflect steady institutional de-risking as rallies stall and breakdowns extend. What once led the market higher has now turned into a source of funds, as investors reassess long-duration growth in the face of accelerating AI disruption. That shift is now showing up clearly in the charts—and Workday, Inc. (WDAY) is a standout example. The stock has broken to fresh multi-year lows and is now approaching levels last seen during the 2020 drawdown, underscoring how severe this trend has become. It remains deeply off its highs, locked in a persistent downtrend that has yet to show signs of stabilization. Technically, the key signal came back in November when the 21-day EMA crossed below the 63-day EMA, triggering a Profit Surge Sell signal that has remained firmly intact. Rather than weakening, that signal continues to assert itself as downside pressure stays firmly in control—and that presents a compelling bearish trade opportunity for this stock.

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When a chart stays this one-sided for this long, the edge often comes from aligning with that persistence rather than trying to anticipate a turn. One way to express that view is through put options, where the thesis is simply that continuation remains more likely than reversal in the near term. The appeal here is in defining the risk upfront while maintaining exposure to further downside if the trend continues to press lower. In a scenario where the stock slides another leg down into expiration, certain contracts could gain meaningfully in value—one current setup, for instance, would imply the potential for roughly a 91.3% gain if shares were to fall another ~10%.

The key isn’t finding one trade—it’s consistently spotting this type of pressure across the market. That’s exactly what I focus on each week in my Weekly Profit Opportunity Newsletter. You can get started today with a full first month trial for just $1! Begin your trial period today!

Wishing You the Best in Investing Success,