Stock of the day: Western Digital Corp
13 February 2023
The first day of the week brings the analysis of Western Digital Corp with a promising bullish setup. The worst part seems to be over and the price is ready to shine again.
Since June 2021, WDC has been in a long-term downtrend. The slide can handsomely fit inside a channel-down formation (black) still present on the chart. In the last quarter of 2022, WDC created a bullish reversal formation – double bottom (yellow). It ended with a rise and a breakout of the neckline of this pattern (orange).
After the breakout, the price tested this area as a support. Actually, it is still testing it, having been trading just slightly above the support in the past few weeks. Technically, as long as we stay above the orange area, we have a legitimate signal to go long. The target is on the upper line of the channel-down pattern. The chances of getting there are quite high.
The price dropping below the orange support would not be a tragedy, but it would definitely cancel the positive sentiment we can see on the chart now.