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.
OTHER STORIES BUZ TRADERS FOLLOW
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.