Western Digital Jumps 4.84% to Extend 10-Day Rally as Volume Confirms Bullish Momentum

Western Digital (WDC) surged 4.84% in the latest session, marking its tenth consecutive daily gain and a 27.45% advance over this period, closing at $102.39 with robust volume of 12.5 million shares. This aggressive bullish momentum forms the backdrop for our multifaceted technical assessment.
Candlestick Theory
The ten consecutive white candles demonstrate sustained buying pressure, with the most recent session printing a long-bodied bullish candle closing near its high of $103.78. This pattern solidifies $100 as immediate support—a level that also coincides with the day’s low and psychological barrier. Resistance now materializes at the current cycle peak of $103.78, with a decisive break potentially accelerating upside momentum. Prior consolidation near $92–$95 (early September) now acts as secondary support, evidenced by multiple candle wicks rejecting dips in that zone.
Moving Average Theory
A golden cross configuration dominates, with the 50-day MA ($84.50) positioned above the 100-day MA ($76.80) and 200-day MA ($68.20), confirming a long-term bullish structure. The ascending slope across all three averages signals consistent trend strength. Price trading 21% above the 200-day MA highlights overextension risk, though the parallel ascent of shorter-term averages suggests ongoing institutional accumulation.
MACD & KDJ Indicators
The MACD (12,26,9) exhibits a widening bullish histogram, with the MACD line accelerating above its signal line—a hallmark of strengthening momentum. Concurrently, KDJ readings reveal extreme overbought conditions: The %K (94) and %D (89) have plateaued near upper thresholds for five sessions, historically preceding minor pullbacks. While KDJ’s bearish divergence warning deserves monitoring, its alignment with MACD’s uptrend implies corrections may remain shallow before resuming upside.
Bollinger Bands
Price rides the upper Bollinger Band (20,2) amidst band expansion—a volatility signature typical of strong trending phases. The 10-day rally stretched the %B indicator to 0.98, approaching maximum statistical deviation. Such conditions often trigger mean-reversion pullbacks toward the $100 midline (20-SMA), though sustained band expansion could extend gains if volume supports new highs. Watch for band contraction to signal consolidation.
Volume-Price Relationship
Volume confirms the rally’s integrity: The three highest-volume sessions (12.5M–20.3M shares) occurred during the advance, including a 5.22% surge on 2025-09-04. Up/Down Volume Ratio exceeds 2:1 over ten days, validating demand dominance. Caution arises as recent volume slightly declined during the final 4.84% gain, suggesting near-term exhaustion. Breakouts above $103.78 require volume >15M shares to sustain momentum.
Relative Strength Index (RSI)
The 14-day RSI (84) resides deep in overbought territory, the highest reading in 12 months. While this warns of pullback vulnerability, note that RSI can remain elevated in parabolic trends. Prior instances of RSI >80 (e.g., July 2025) resolved with 5–8% dips before recovery. Current levels imply limited near-term upside potential without consolidation.
Fibonacci Retracement
The advance from the $35.51 trough (April 2025) to $103.78 places key Fibonacci levels at $69.65 (61.8%) and $77.70 (50%). The August 2025 consolidation near $77–$81 aligned with the 50% retracement, reinforcing its significance as major support. Projecting the rally’s amplitude (100% retracement at $103.78 achieved), the 127.2% extension targets $110.60 as the next technical resistance.
Confluence and Divergence Observations
Bullish confluence appears via moving average alignment, volume confirmation, and MACD strength. However, bearish divergences emerge: RSI and KDJ overbought extremes contradicting price highs, coupled with reduced volume during the latest spike. While the primary trend remains intact, these signal high probability of consolidation near $100–$103.78 before directional resolution. A close below $100 would trigger short-term profit-taking toward the $95 Fibonacci/moving average support cluster.