Promising Signs: WESTERN DIGITAL CORP Setting the Stage for a Breakout.

Our stockscreener has identified a possible breakout setup on WESTERN DIGITAL CORP (NASDAQ:WDC). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:WDC for potential opportunities.

Zooming in on the technicals.

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.

Overall WDC gets a technical rating of 10 out of 10. 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.

• The long and short term trends are both positive. This is looking good!
• 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. We also observe that the gains produced by WDC over the past year are nicely spread over this period.
• WDC is part of the Technology Hardware, Storage & Peripherals industry. There are 32 other stocks in this industry. WDC outperforms 87% of them.
• WDC is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month WDC has a been trading in the 73.81 - 81.55 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

For an up to date full technical analysis you can check the technical report of WDC

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:WDC currently has a 9 as setup rating:

Besides having an excellent technical rating, WDC also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 78.83. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 75.77, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:WDC be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

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.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.