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

The company’s stock, which had fallen about 25 percent from its record closing price through Thursday’s close, has come under investor scrutiny this year amid concerns that enterprise customers have cut spending on premium software subscription services amid macroeconomic uncertainty.

Below, we will take a closer look at Workday’s chart and use technical analysis to identify the key price levels to watch after the company’s bullish report.

Double floor breakout

Workday shares formed a double bottom between June and August, a well-known chart pattern that indicates an upward reversal after a prolonged downtrend.

In addition, the Relative Strength Index (RSI) indicator formed a comparatively shallower low as the second bottom of the formation made a lower low, creating a bullish divergence, a technical signal that suggests fading selling momentum.

The stock price recently re-reached the 50-day moving average and is in position to break above the double bottom neckline on Friday.

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

Watch these price levels given the strength following the earnings announcement

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

The first is at $264, an area on the chart that could face resistance from above, on a trend line that connects three lows formed between December and March and reached a countertrend peak in late May.

If the upside continues, shares could climb to the $279 area, where they could come under selling pressure near a horizontal line that connects a series of comparable trading levels from December to March, including the opening price of a significant gap in early March.

Finally, a more significant increase could lead to a rally to $306, a price that is likely to attract attention in the context of the stock’s record closing price in late February.

It’s also worth noting that this area roughly aligns with a bar pattern price target if you take the up move from September to February and position it from the double bottom low. Interestingly, that previous move began after a gap down, similar to the stock’s recent rise that began after the broad market sell-off on August 5.

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At the time of writing, the author does not own any of the securities mentioned above.