WDC closes higher for the 4th day in a row
Western Digital Corporation (WDC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WDC finished Thursday at 44.29 gaining $2.66 (6.39%), outperforming the Nasdaq 100 (5.72%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WDC as at Mar 26, 2020):
Thursday's trading range has been $3.49 (8.02%), that's below the last trading month's daily average range of $4.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WDC.
Prices are trading close to the key technical resistance level at 47.60 (R1). After having been unable to move above 45.41 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 46.19. The last time this happened on Monday, WDC actually gained 17.75% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Western Digital. Out of 79 times, WDC closed higher 56.96% 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 62.03% with an average market move of 1.66%.