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Technical Insights for WESTERN DIGITAL CORP (NASDAQ:WDC): Is a Breakout Imminent?

By Mill Chart

Last update: May 9, 2024

Our stock screener has flagged WESTERN DIGITAL CORP (NASDAQ:WDC) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:WDC for potential movement.

WDC Daily chart on 2024-05-09

Insights from Technical Analysis

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to WDC. Both in the recent history as in the last year, WDC has proven to be a steady performer, scoring decent points in every aspect analyzed.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • When comparing the yearly performance of all stocks, we notice that WDC is one of the better performing stocks in the market, outperforming 96% of all stocks. On top of that, WDC also shows a nice and consistent pattern of rising prices.
  • WDC is one of the better performing stocks in the Technology Hardware, Storage & Peripherals industry, it outperforms 87% of 32 stocks in the same industry.
  • WDC is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so WDC is lagging the market slightly.
  • In the last month WDC has a been trading in the 65.23 - 74.19 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of WDC for a complete technical analysis.

How do we evaluate the setup for NASDAQ:WDC?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:WDC currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

WDC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 73.11. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 70.88, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:WDC

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Our Breakout screener lists more breakout setups and is updated daily.


Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.



NASDAQ:WDC (6/17/2024, 7:18:20 PM)

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