And another to check in on is Western Digital which we first picked up when the stock was trading at $47.27 and starting to develop bullish moment and break away from the volume point of control on the weekly chart. Since then we have seen the trend develop, but with a reversal in late December, prior to the injection of volume at the end of the year which propelled the stock up towards the $56 per share level and triggering a volatility signal on the daily chart on excellent volume. As such we now have to be prepared for consolidation to develop in this area. Yesterday’s down candle appeared on good volume as the primary indices weakened strongly on the news of the impending re-run of the Senate vote in Georgia so this was no surprise and in early trading today the stock is once again picking up the bullish tone, and provided we see the high of the volatility candle taken out in due course, expect to see this stock continue higher in the early part of 2021 from its current price of $53.62 per share.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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