Rally

Million

Billion

<ul class="list-ic vertical"> 
 <li> <span>1</span> <a>Western Digital Corporation stock price closed at $45 with a rise of 5.83% during the intraday trading session.</a> </li> 
 <li> <span>2</span> <a>WDC stock became the best performer in the S&amp;P 500 on 31 August.</a> </li> 
 <li> <span>3</span> <a>The year-to-date return of Western Digital is 40.93%.</a> </li> 
</ul> 
<p>Western Digital Corporation (WDC) stock price has been in an uptrend since the middle of May, rising from the low of $32. The stock price has surged roughly 42% from the low. Recently, WDC stock rejected $44 and corrected the bullish move. The price broke the trend line and formed a support near $39.50.&nbsp;</p> 
<p>The stock price has been printing a bullish candle for the past 4 days and has broken the annual high. The previous candle successfully closed above $44, initiating a breakout.&nbsp;</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
  <img decoding="async" src="https://lh4.googleusercontent.com/xiPDDwuanXDq2lPqEUvnInjgUtnEYVc-AimcKCkEYHs-WXpAraET_Nm052FxBqpunb_hGdO8NJARvnH9Dgn5KRG7ByG3p4wq626g7Us0FnZfTkmW2or_j5hgg9nFwsbMVS-Q6Ex-sXVLgPRD0uZwNA" alt="Western Digital Corporation (WDC Stock): Next Destination - $50?"> 
  <figcaption class="wp-element-caption">
    Source: WDC Stock Price By <a href="https://www.tradingview.com/x/9JoIkvs6/" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>. 
  </figcaption> 
 </figure> 
</div> 
<p>If the next candle can break the high of the last candle, it might rise toward the next resistance level of $48. The breakout requires follow-up bullish momentum. On the other hand, if the next candle breaks the low of the last candle, the price might melt back into the previous zone and potentially toward $39.50.&nbsp;</p> 
<h2 class="wp-block-heading" id="strong-reason-behind-the-surge-in-western-digital-stock-strong"><strong>Reason Behind the Surge In Western Digital Stock</strong></h2> 
<p>On 31 August, WDC stock surged roughly 6% after Morgan Stanley reiterated an overweight rating on the shares. Morgan Stanley has kept the price target at $52.&nbsp;</p> 
<p>The company noted the increase in demand for NAND – a type of storage technology remains strong, despite its near-term pricing pressure. The NAND business also seems to be undervalued on a sum-of-the-parts basis.&nbsp;</p> 
<p>Analysts stated that the market is oversupplied but they have seen instances of double-digit increases in price for September delivery. Buyers are cynical but are paying higher prices.</p> 
<p>On August 1, 2023, <a href="https://www.thecoinrepublic.com/2023/07/30/western-digital-wdc-stock-will-earnings-act-as-a-catalyst/" target="_blank" rel="noopener noreferrer nofollow">Western Digital</a> reported its fourth-quarter earnings results and was successful in crushing the estimates. For quarter 1, 2024, the company expects revenue in the range of $2.55 Billion to $2.75 Billion.</p> 
<p>The loss per share is expected between $1.80 and $2.10. WDC gross margin is expected in the range of 2.5-4.5% and the operating expenses are expected between $570 Million and $590 Million.</p> 
<h3 class="wp-block-heading" id="strong-will-the-wdc-stock-bullish-rally-continue-strong"><strong>Will the WDC Stock Bullish Rally Continue?</strong></h3> 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
  <img decoding="async" src="https://lh5.googleusercontent.com/D3RNP9wcaHpU1VgYs2f_guZLnynKqDaxGsXIwxDO6nPQwfK3pm9Nnh2OlMY_6nJycb7m_CY0pSHSf4_JvMh19U_uDlGnmvIWL9dTnwRVrVKnXFSjNR521q_ypLnd-jQvRQJoWfHGAMgFJADY7H_pyQ" alt="Western Digital Corporation (WDC Stock): Next Destination - $50?"> 
  <figcaption class="wp-element-caption">
    Source: WDC Stock Price By <a href="https://www.tradingview.com/x/ZBpooxr8/" rel="noopener noreferrer nofollow">TradingView</a>. 
  </figcaption> 
 </figure> 
</div> 
<p>The stock price has spiked above 20, 50, 100 and the 200-day exponential moving average indicates bullish momentum. Chaikin money flow (CMF) score has been hovering above the 0 mark since the end of June 2023. CMF currently stands at 0.04 suggesting slight strength in the market.&nbsp;</p> 
<p>The relative strength index stands at 68.77, nearing the overbought zone, indicating strong bullish momentum in the price. If RSI enters into an overbought zone, the price might witness a short-term pullback. The Bollinger bands are slowly expanding, indicating a rise in volatility.&nbsp;</p> 
<h4 class="wp-block-heading"><strong>Conclusion&nbsp;</strong></h4> 
<p>The market structure and price action of Western Digital are strongly bullish after Morgan Stanley reiterated its rating to overweight. Technical parameters also favor the buying side.&nbsp;</p> 
<h5 class="wp-block-heading"><strong>Technical Levels</strong></h5> 
<ul> 
 <li>Major support: $39.50 and $32</li> 
 <li>Major resistance: $48 and $51&nbsp;</li> 
</ul> 
<h5 class="wp-block-heading"><strong>Disclaimer</strong></h5> 
<p>The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.&nbsp;</p>

Western Digital Corporation (WDC Stock): Next Destination – $50?

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Thecoinrepublic.com

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