Workday, Inc. (NASDAQ:WDAY) shares are trading higher on Monday, although they have been trending lower for years.

But the long selloff may finally be over. This is why we have made Workday the Stock of the Day.

‘Markets have memories' is an old saying on Wall Street. It refers to how an important price level in a financial market can retain its importance for a long time. It can be months or even years.

This can be seen on the chart of Workday.

In March 2020, the stock market went into a huge selloff due to concerns over COVID. Shares of Workday found a bottom around the $110 level and a rally followed.

As you can see on the chart, the shares once again found support at this level in April.

Markets can find bottoms at former bottoms or support levels. This is a result of remorseful or regretful sellers.

These are people who sold their shares at the support level. When the shares rallied afterward, a number of the traders and investors who had sold decided that their decision to sell was a mistake.

Many of them also decided that, if and when it became possible, they would buy back their shares at the same price they had been sold for. As a result, when the shares fell back to this price last month, these remorseful sellers placed buy orders.

The large concentration of these buy orders resulted in support forming at the level again.

Stocks tend to rally after they reach support. This happens when anxious and impatient buyers start to outbid each other. They know the sellers will go to whoever is willing to pay the highest price.

They don't want to miss the trade, so they increase their bid prices. Other anxious and impatient buyers see this and do the same. This can result in a snowball effect that drives prices higher.

A new uptrend may be forming in Workday.

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