Western Digital Shares Surge 7.32% as Bullish Breakout and Golden Cross Confirm Uptrend

Western Digital (WDC) closed the most recent session with a significant 7.32% gain, surging to $181.95 after opening at $168.9044. This sharp move suggests strong institutional buying or a breakout from a consolidation phase. The candlestick pattern formed by the recent session—a long bullish body with a minimal upper shadow—indicates conviction in the upward move. Key support levels appear to congregate around the prior range of $150–$160, while resistance is now dynamically shifting to the upper Bollinger Band at $182–$185, which coincides with the recent high.
Candlestick Theory
The recent bullish reversal from the $160–$165 range is reinforced by a series of higher highs and higher lows over the past two weeks. A potential "engulfing" pattern emerged on December 10, where the candle’s body fully encompassed the previous day’s bearish candle. This suggests a short-term shift in sentiment from bearish to bullish. Key support levels are identified at $160 (prior swing low), $150 (December 4 low), and $139 (November 21 low). Resistance is now at $182 (current high), with a critical psychological level at $200 looming as a long-term target.
Moving Average Theory
The 50-day moving average (approx. $165) and 100-day moving average (approx. $155) are both below the current price, indicating a short-term bullish trend. The 200-day moving average (~$145) remains a significant long-term support level. The price has crossed above both the 50-day and 100-day averages, forming a "golden cross" on shorter timeframes, which historically signals a bullish momentum shift. However, the 200-day average may act as a filter for sustained upward movement.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the line crossing above the signal line, confirming momentum. The stochastic oscillator (KDJ) shows overbought conditions (K at 85, D at 78), suggesting a potential pullback. However, the divergence between price highs and KDJ peaks on December 5–10 indicates weakening momentum, raising caution about a near-term correction.
Bollinger Bands
Volatility has expanded sharply, with the bands widening from a narrow range of $150–$170 to $160–$185. The price is currently at the upper band, suggesting a high-probability retest of the midline ($173) for continuation or a reversal. The contraction of bands in early December (e.g., November 30–December 3) preceded the breakout, aligning with the "calm before the storm" pattern.
Volume-Price Relationship
Trading volume surged to 7.97 million shares on December 10, a 40% increase from the prior session, validating the price breakout. However, the volume profile shows a "spike" pattern, which may indicate exhaustion if follow-through buying fails. The volume mean reversion around $160–$165 suggests that this range could act as a gravitational center for any pullback.
Relative Strength Index (RSI)
The 14-day RSI is at 72, entering overbought territory, which historically precedes corrections. While this does not guarantee a reversal, the RSI divergence (lower highs in price vs. higher highs in RSI on December 5–10) suggests caution. A drop below 60 would signal weakening momentum, but a rebound above 70 could confirm continuation.
Fibonacci Retracement
Key Fibonacci levels from the December 10 high ($182) to the November 21 low ($139) are:
- 23.6%: $170
- 38.2%: $163
- 50%: $160
- 61.8%: $153
The price is currently testing the 23.6% retracement level as support, with a breakdown below $160 likely to trigger a retest of the 50% level at $160.
Confluence and Divergences
The most compelling confluence is the alignment of the 50-day moving average, Fibonacci 38.2% level, and Bollinger Band midline at $163–$165, which could act as a critical support cluster. Divergences between the MACD and price action suggest that while the trend remains bullish, a consolidation phase is probable.
Probabilistic Outlook
The immediate bias remains bullish, with a 60–70% probability of the price holding above $160 to maintain the uptrend. A break below this level may trigger a 20–30% retracement to $153–$155, where Fibonacci and 200-day moving average support congregate. Conversely, a close above $185 would confirm a new bull trend, with the next target at $200.

Final Considerations
The recent breakout is supported by strong volume and moving average alignment, but overbought indicators and RSI divergence suggest a high likelihood of short-term profit-taking. Traders should monitor the $160–$165 confluence zone for directional clues, while longer-term investors may consider the 200-day moving average as a critical filter for trend sustainability.