WDC stuck within tight trading range
Western Digital Corporation (WDC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
WDC finished Wednesday at 38.78 gaining $1.00 (2.65%), notably outperforming the Nasdaq 100 (-1.67%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WDC as at Sep 16, 2020):
Wednesday's trading range has been $1.36 (3.57%), that's slightly above the last trading month's daily average range of $1.28. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WDC. Prices continued to consolidate within a tight trading range between 37.58 and 39.39 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, WDC actually lost -2.98% on the following trading day.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 37.58 where further sell stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Western Digital. Out of 567 times, WDC closed higher 50.09% 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 54.32% with an average market move of 0.79%.