Western Digital has skidded lower for months, but now the data-storage company seems to be fighting the bears.
The main pattern on today’s chart is the double-bottom around $49.50. Sellers hammered WDC down to that level following the last two quarterly reports, and both times they quickly retreated. That area was also a high in June 2020 and a low in December 2020-January 2021.
Second is the downward-sloping trendline beginning last June. Notice how prices have breached that line in the last few months.
Next, WDC’s series of higher lows since late January has produced a potential ascending triangle.
Fourth, MACD recently turned positive.
Finally, WDC trades for less than 10 times earnings. That could potentially help the stock at a time when investors are wary of higher valuations.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The main pattern on today’s chart is the double-bottom around $49.50. Sellers hammered WDC down to that level following the last two quarterly reports, and both times they quickly retreated. That area was also a high in June 2020 and a low in December 2020-January 2021.
Second is the downward-sloping trendline beginning last June. Notice how prices have breached that line in the last few months.
Next, WDC’s series of higher lows since late January has produced a potential ascending triangle.
Fourth, MACD recently turned positive.
Finally, WDC trades for less than 10 times earnings. That could potentially help the stock at a time when investors are wary of higher valuations.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
