Western Digital Jumps 3.04% As Technicals Signal Bullish Continuation Above $66

Western Digital (WDC) rose 3.04% in the most recent session, closing at $65.78 after trading between $63.01 and $65.93 on volume of 7.12 million shares. This analysis evaluates WDC's technical posture using multiple frameworks.
Candlestick Theory
Recent price action shows a bullish breakout pattern, with the July 2nd candle closing near the session high after clearing the $64.21 resistance level. Key resistance is now evident near $66.00 (psychological barrier and recent swing high), while support consolidates around $63.00 (June 26-30 consolidation zone). The absence of reversal patterns like shooting stars or bearish engulfing suggests continuation bias.
Moving Average Theory
The 50-day SMA (currently near $55.00) crossed above the 100-day ($52.00) and 200-day SMA ($49.50) in late May, confirming a golden cross and establishing a bullish multi-timeframe trend alignment. Current price trades well above all three averages, with the steepest ascent in the 50-day SMA reflecting strengthening short-term momentum. This hierarchy (price > 50-day > 100-day > 200-day) signals robust upside potential barring a breakdown below $60.00.
MACD & KDJ Indicators
The MACD histogram remains positive since its bullish crossover in early June, with both MACD and signal lines trending upward, indicating sustained momentum. Concurrently, the KDJ oscillator shows %K (93) and %D (88) in overbought territory, suggesting near-term exhaustion risk. This divergence between MACD's continued strength and KDJ's overbought reading may imply short-term consolidation without immediate reversal pressure.
Bollinger Bands
Bands expanded sharply in the last week as price approached the upper band ($66.20), reflecting elevated volatility during the breakout. The 20-day SMA ($62.50) slopes upward, providing dynamic support. While proximity to the upper band implies overbought conditions, the expansion phase typically favors continuation rallies. A close below $63.50 would signal a potential retracement toward the middle band.
Volume-Price Relationship
The 32% volume surge on July 2nd's advance validates breakout conviction, exceeding the 20-day average volume of 6.3 million shares. Notable accumulation occurred near the $60 support level in late June (June 23-24 volumes >7M). Volume divergence is absent during pullbacks, reinforcing the uptrend's sustainability. Declining volume during minor retracements (e.g., July 1st -0.23% on below-average volume) indicates limited selling pressure.
Relative Strength Index (RSI)
The 14-day RSI reads 73, hovering above the overbought threshold of 70 after peaking at 78 in late June. While extended, the lack of bearish divergence (price made higher highs alongside RSI) tempers immediate reversal concerns. The three-week consolidation near 60 RSI in mid-June provided a reset before the current ascent, reducing vulnerability to steep corrections. Caution is warranted if RSI sustains >75 without incremental price gains.
Fibonacci Retracement
Using the swing low of $30.54 (April 4, 2025) and high of $80.24 (July 10, 2024), key retracement levels are $42.27 (23.6%), $49.52 (38.2%), $55.39 (50%), and $61.25 (61.8%). The recent close above $61.25 signals bullish momentum continuation toward the 78.6% level at $69.60. This breakout converges with the psychological $66 barrier and Bollinger Band resistance, creating a critical test zone between $65.93-$66.00.
Confluence and Divergence Observations
Strong confluence appears near $63.00, where the 20-day SMA, recent swing lows, and volume-based support align. Breakout validation exists through volume expansion, MACD momentum, and Fibonacci clearance. The primary divergence involves overbought signals (KDJ, RSI, Bollinger Bands) contrasting with trend-confirming indicators (moving averages, MACD, volume), suggesting near-term consolidation within the $63-$66 range may precede further upside. Probable bullish continuation appears likely above $66 with sustained volume, though failure to hold $61.25 would undermine the technical structure.