Don't Ignore This Chart

Western Digital Breaks Out of Continuation Pattern

 | 

Western Digital (WDC) appears to be emerging from a consolidation pattern and this increases the chances of new highs in the coming weeks. The chart shows WDC hitting a new high in July and then falling with a rather sharp decline into early August. The stock immediately rebounded after this decline, but then traded sideways as a triangle formed. This triangle is basically a consolidation within an uptrend and a breakout means the bigger uptrend is continuing. Note that the 50-day EMA has been above the 200-day EMA for over a year now. WDC struggled to break the triangle trend line in late October, but buying pressure increased over the last six days as the stock edged above the August high. A resistance breakout is in the making and this means WDC is poised to challenge its July high. 

Follow me on Twitter @arthurhill  - Keep up with my 140 character commentaries.

****************************************
Thanks for tuning in and have a good day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
*****************************************

Enjoy this article? Hear more from Arthur Hill at

August 10th & 11th, 2018


See how the experts are protecting themselves from market volatility and reducing risk in uncharted waters

Join us online this August for two full days of investing insights, charting wisdom and market commentary from the industry's leading technicians. Streaming live wherever you are, you'll learn exactly how the experts are navigating the market's changing tides and remaining profitable in all conditions.

Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart to be notified whenever a new post is added to this blog!
comments powered by Disqus