Western Digital Jumps 4.17% As Technicals Confirm Bullish Uptrend

Western Digital (WDC) gained 4.17% in the latest trading session, closing at $105.15 on significant volume. This analysis examines the stock's technical structure using multiple indicators.
Candlestick Theory
Recent sessions show bullish confirmation. A Piercing Line pattern emerged on September 15th (downward trend followed by a white candle closing above prior midpoint), supported by the current session's strong white candle breaking above September 17th's resistance. Key resistance is now evident near the recent high of $106.11, while immediate support lies at the $102-$100 psychological zone, reinforced by the September 12th trough of $95.98. The rejection of prices below $90 on September 4th establishes a significant longer-term support level.
Moving Average Theory
The 50-day Moving Average (calculated approximately around $75.50) has crossed bullishly above the 200-day MA (near $63), confirming a Golden Cross and signaling a major long-term uptrend. The 100-day MA (approximately $69) provides dynamic support. The current price trading above all three key averages (50, 100, 200) reinforces the bullish bias. A short-term pullback could find initial support near the rising 50-day MA.
MACD & KDJ Indicators
The MACD line crossed above its signal line in late August and remains in positive territory, confirming upward momentum despite recent consolidation. The KDJ shows the %K and %D lines retreating from overbought levels (above 80) but holding above 50, suggesting positive momentum moderation rather than reversal. No significant bearish divergence is apparent. The indicators collectively support continuation of the current trend following a potential near-term cooldown.
Bollinger Bands
Price volatility expanded significantly in September, with prices challenging the upper band multiple times. The bands are now moderately wide, suggesting continued active trend participation. Current price near the upper band ($106.11) indicates potential short-term resistance. Any contraction in the bands after this surge could signal a consolidation phase before the next directional move.
Volume-Price Relationship
Bullish volume confirmation is significant. The September upswings (e.g., +5.22% on Sept 4th, +4.84% on Sept 15th, current +4.17%) all occurred on notably higher volume than preceding down days, indicating strong buying conviction. The surge in volume on the breakout above $100 strengthens the validity of this resistance-turned-support level. Declining volume on minor pullbacks further supports the bullish structure.
Relative Strength Index (RSI)
The daily RSI (currently calculated near 66.7) has moved firmly out of oversold territory (<30 seen in July) but remains below overbought (70). This indicates sustained upward momentum without immediate exhaustion. While nearing overbought territory, the lack of extreme readings suggests room for further upside, especially given the supportive volume trend. The RSI structure aligns with the established uptrend.
Fibonacci Retracement
Applying Fibonacci to the swing low from August ($74.57 on Aug 22) to the recent high ($106.11) reveals key levels. The 23.6% retracement level ($99.20) was tested and held as support in mid-September. The 38.2% level ($93.75) aligns with the significant $90-$94 support zone. The 50% retracement coincides with the rising 50-day MA ($88.50), adding confluence. On the upside, the 161.8% extension level projects towards $108, marking a potential next resistance target.
Confluence and Conclusion
Strong confluence exists between technical indicators for Western Digital. The Golden Cross (50/200 MA), volume-supported break above $100, constructive RSI, and MACD positivity all confirm a bullish primary trend. Bullish volume patterns add conviction to moves higher. Key resistance lies near the $106.11 recent high and the $108 Fibonacci projection. Robust support is established at $100-$102 (psychological, recent swing high/low), with major support near $93-$94 (38.2% Fib, volume zone). While momentum indicators show the short-term move may be extended, suggesting consolidation is possible, the overall technical structure favors the upside on pullbacks towards identified support levels. A sustained break above $106.11 could propel the stock towards the $108 target.