Sell signal, week 14
Western Digital drops 9.1% after a rejection at its 20-week moving average
Our view last week
After a week in which buyers took 82% of the volume without moving the price, Western Digital stock bounced off its 20-day moving average and closed 3.5% higher. Money flow has been positive for 3 weeks and the ADX has fallen for 14: the decline is losing conviction, even as the MACD stays below its Signal line. For price action trading, the game now plays out between the 455 and 465 areas, and the short remains more than 15% in profit.
This week's summary
Last week's bounce faded under the 20-week moving average, in the 461 area, and Western Digital stock dropped 9.1%, sliding to a new 90-day low that the weekly close did not confirm. The technical analysis shows the decline regaining its stride: MACD below its Signal line for 12 weeks, RSI at its lowest in 4 weeks. Money flow stays positive, though weakening. Among US tech stocks, this swing trading short is more than 22% in profit, with earnings due on October 22.
IQS Phase
48
ordinary
Signal Strength
50
decline starting to make lower lows
Sizing
STANDARD
Ranking
#39 / 175
US stocks
Trade P&L %
+22.95%
from signal to date, no stop loss
Western Digital (WDC) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 39th among the 175 sell signals for US stocks in our ranking, with a signal strength of 50 out of 100.
Sector context
SectorGrowth Tech
Benchmark ETFXLK
Sector regimein strong phase
Performanceweekly +1.80% · monthly +8.83%
WDC belongs to the growth tech sector (reference ETF XLK). The sector is classified in strong phase according to our weekly reading.
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