Western Digital developing nicely

WDC weekly chartAnother stock which performed well last week and similar in terms of chart construction to State Street Corporation is that for Western Digital and you can read the analysis here :

Western Digital now developing bullish momentum

At the time the stock was trading at $47.27 per share and building on the extremely strong platform of support created by a cluster of two levels on the accumulation and distribution indicator putting the longer-term target for this stock at the $70 per share level. Last week’s candle ended as a wide spread up candle closing at $51.75 per share so a solid gain. However, for this week, the price has to push through the heavier volume on the VPOC histogram with volume becoming denser as the stock moves higher and through to $60 per share, resulting in the price action becoming more laboured over the next couple of weeks. One of the reasons last week’s price action was so positive was the low volume node which presented little in the way of resistance hence easing the path higher. So in the short term expect to see some congestion at the current level,  but longer-term there is plenty more to come from this stock.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2009 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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