WDC closes lower for the 2nd day in a row
Western Digital Corporation (WDC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WDC finished the week 3.31% higher at 69.25 after edging lower $0.33 (-0.47%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WDC as at Feb 14, 2020):
Friday's trading range has been $1.93 (2.75%), that's slightly below the last trading month's daily average range of $2.26. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WDC.
Prices broke below the key technical support level at 69.50 (now R1), which is likely to act as resistance going forward. The last time this happened on January 31st, WDC actually gained 2.66% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 71.30 where further buy stops might get triggered. With prices trading close to this year's high at 72.00, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Western Digital. Out of 226 times, WDC closed higher 59.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.19% with an average market move of 1.12%.