Buz Investors Without a Doubt, Bullish Western Digital Corp (NASDAQ:WDC) stock represents a piece of price perfection. I am enamored with the WDC stock

WDC Stock Is, Without a Doubt, Bullish

This Is WHY WDC Stock Will Continue to Appreciate

This Is WHY WDC Stock Will Continue to Appreciate

Buz Investors Without a Doubt, Bullish Western Digital Corp (NASDAQ:WDC) stock represents a piece of price perfection. I am enamored with the WDC stock chart on many levels, but its ability to abide by the rules that are set out by technical analysis are what sets it apart.

As a proponent of this style of investment analysis, it has made covering Western Digital stock a pleasure because the indicators on the chart are concise, and the patterns are pristine.



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Without a Doubt, Bullish

 

For anyone who is not familiar with technical analysis, this form of investment analysis is based on the notion that the price trends over time and, therefore, historical price data can then be used to forecast future prices. I have been refining my craft using this method for nearly two decades, and I have experienced much success in doing so.

A simple trend line was used to define the bearish trend that began shortly after the price peaked at $107.91. This trend line was created by connecting the peaks on the price chart. This downtrend line contained the price as it trended lower, and, as long as the price remained below it, the predominant trend was lower.

Within this downtrend, after the $40.00 support level was tested, an uptrend slowly began to develop. This trend was not confirmed until the price was able to break above the downtrend line in October 2016. This break in the downtrend line indicated that the bearish trend had concluded, and that the price was now free to appreciate. This indicator preceded the bullish MACD cross, which then acted to reinforce the notion of a new bullish trend.

Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




Western Digital Corp: This Is Why WDC Stock Is Shooting Higher

Western Digital Corp: This Is Why WDC Stock Is Shooting Higher

Western Digital Corp: This Is Why WDC Stock Is Shooting Higher

  • Buz Investors WDC Stock Is Shooting Higher (NASDAQ:WDC) stock is set to trade higher on Wednesday after the company preannounced that second-quarter revenue is going to come in above the levels that were previously expected.
  • As a result, the company has increased its forecast for second-quarter earnings. WDC stock added an additional 4.79% in after-hours trade after this bullish news was disseminated.
  • This news doesn’t come as total shock, because I have been bullish on WDC stock for some time. Western Digital on October 26, 2016

WDC Stock Is Shooting Higher

Western Digital Corp: This Is Why WDC Stock Is Shooting Higher

WDC Stock Is Shooting Higher Western Digital stock was trading at $56.52 when that report was published, and on Tuesday in after-hours trade, WDC stock closed at $66.91. Quite an impressive run in a short amount of time.

I have been using price and volume data to discern trends and forecast future prices for over a decade, and I have enjoyed some success doing so. This style of analysis is known as technical analysis. It is not perfect, but it has been instrumental in giving me the ability to subjectively apply trading strategies to potential investments.

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WDC Stock Is Shooting Higher

The WDC stock chart above illustrates that the long-term level of support sits at $40.00. This level is highlighted with a blue horizontal trend line. This level served as resistance from 2009 to 2013, and was tested numerous times before it was finally broken. It is not uncommon that when a major level of resistance is finally broken, it becomes a level of support.

Shortly after a bottom was established in WDC stock, a bullish pattern started to emerge. There are two parallel lines that define this bullish trend. Such a trend is what traders refer to as an ascending channel. There two trend lines that define the upper and lower bounds. The share price oscillates between these two lines for as long as the trend permits.




Western Digital Corp: This Is Why WDC Stock Will Continue to Climb

Western Digital Corp: This Is Why WDC Stock Will Continue to Climb

Western Digital Corp: This Is Why WDC Stock Will Continue to Climb

  • Buz  Investors WDC Stock Will Continue to Climb (NASDAQ:WDC) develops and produces data storage devices in an era in which the amount of data we consume and store continues to grow at exponential rates.
  • Data transfer speeds have allowed huge amounts of data to stream live on our platforms, and all this information needs to be stored and housed somewhere.
  • The demand for larger data storage devices grows as consumers of data try to keep pace. WDC stock is well positioned to benefit from this insatiable demand.

WDC Stock Will Continue to Climb Simply Bullish

WDC Stock Will Continue to Climb

WDC Stock Will Continue to Climb  Western Digital stock suffered quite a setback in 2015, as the share price fell from a high of $107.91 to a low of $34.30. This was a devastating loss for WDC stock investors, but my argument is that this drop was in the context of a much larger bull market, and that this price action was necessary in order for WDC stock to set the stage for its next advance.

I use price charts to analyze potential investments, and this process has been instrumental in setting objectives and producing appropriate strategies. It is because of this body of knowledge that I am bullish on WDC stock, and the evidence I provide below supports this view.

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WDC Stock Will Continue to Climb

Swing traders could use this pattern to set up an appropriate trading strategy. I would only take long positions in such a trend, because a bad entry point will eventually be corrected by time because the pattern slopes upward. This bullish trend would end when the channel is broken to the downside.

A golden cross is a bullish signal that is produced when a faster 50-day moving average (highlighted in blue) crosses above a slower 200-day moving average (highlighted in red). This signal was generated in September 2016, and it confirms that a bull market is now officially in play. It is not a coincidence that the trend higher accelerated after this signal was produced.

Western Digital Corp: WDC Stock Retest 52-Week Lows

Western Digital Corp: WDC Stock Retest 52-Week Lows

  • WDC Stock Retest 52-Week Lows Western Digital Corp (NASDAQ:WDC) stock represents a play on the data storage device sector. The economy might not be registering any inflation, but data storage sure is. 16 GB is not what it used to be, as my 16-GB smartphone became obsolete pretty quickly,
  • managing data became quite an ordeal. I quickly found myself paying to store data in the cloud and backing up data to my computer to free up space on a regular basis.
  • I can’t say for certain where Western Digital stock will trade, but I am a firm believer in technical analysis

WDC Stock Retest 52-Week Lows Pattern Failure

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WDC stock had completed a head-and-shoulders bottom but that pattern was quickly aborted. Failed patterns are significant and should not be ignored. If I used this pattern to enter into a prospective position, I would be wise to exit when the price traded back below the neckline (highlighted in blue). In my systematic trading system, I try to keep my losses tight and let my winners run. This allows many small losses to be undone by a few large gains.

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Not everything on the chart above is bearish. The good news is that the moving averages are converging and will be producing a golden cross in the coming days. A golden cross is a bullish signal that is produced when a 50-day moving average, highlighted in blue, crosses above a 200-day moving average, highlighted in red. Traders use this signal to confirm that a bull market is on the horizon. It is always wise to trade in the direction of this signal. A trader’s position should either be long or neutral in the face of such a signal.

The pattern in question is a bearish rising wedge. It is a consolidation pattern and, on average, is a continuation pattern. A close below $46.00 would indicate that lower prices were on the horizon, and a possible test of support at $40.00. A close above $48.00 would negate the bearish price pattern and indicate higher prices that could lead to a retest of the neckline and a possible breakout.

 

 


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