WDC Rose 1,250% Over a Year, Then Sank. What Its Chart Says NowWestern Digital CorporationBATS:WDCmoomooWestern Digital WDC soared more than 1,250% over 12 months to hit a $799.87 record high in June, but has given back some 30% since then. Let's look at WDC's technicals and fundamentals to see if it's looking safer to get back into stock -- or if there's more pain to follow. Western Digital's Fundamental Analysis WDC was at one time part of my "Memory/Storage Basket," which was wildly successful ... until it wasn't. Suddenly, I and others invested in the space were forced to put our risk-management skills to the test. This is why we so extensively use target prices, pivot points, add levels and panic points in everything we do. The stock dropped 8% to my assigned panic point and I turned it into a day-trading vehicle. Then it dropped another 8% over time and I discarded the stock from my most-active portfolio. The next major catalyst for the stock could come on or about Aug. 5, when Wall Street expects WDC to release fiscal Q4 results. The Street is looking for WDC to report $3.30 in adjusted earnings per share on roughly $3.7 billion of revenue. Numbers like that would reflect a wildly successful quarter, including 42% year-over-year revenue growth and a 98.8% gain to the $1.66 in adjusted EPS result that the firm posted for the year-ago period. In addition, 18 of the 19 sell-side analysts that I know of who cover WDC have increased their bottom-line estimates for the period since it began. (One has made no changes, while zero have taken their numbers lower.) Western Digital's Technical Analysis Next, let's check out WDC's chart going back about three months and running through Tuesday afternoon (July 21): Readers will see that WDC developed a head-and-shoulders pattern of bearish reversal from mid-May into the present, marked with green shading in the chart above. This pattern developed what looks like a $480 downside pivot that the stock briefly cracked last week, falling to as low as $430.52 intraday Thursday before bouncing sharply in recent days. (WDC closed at $548.39 Tuesday as tech stocks rebounded.) But is there more downside to come? There certainly could be. Looking at the other technical indicators in the chart above, Western Digital's Relative Strength Index (the gray line marked "RSI" at the chart's top) is weaker than neutral -- but appears to be ascending. Meanwhile, Western Digital's daily Moving Average Convergence Divergence indicator (or "MACD," denoted by blue bars, a black line and gold line at the chart's bottom) is having some issues. For example, the histogram of the 9-day Exponential Moving Average (or "EMA," marked with blue bars) went negative in late June and is still there. That's a short-term bearish signal that has already overstayed its welcome. The 12-day EMA (the black line) crossed below the 26-day EMA (the gold line) in late June as well. That's a medium-term bearish signal. That said, the black line does appear to be rising relative to the gold line. That could be a positive, but traders would likely look for an actual crossover back above the 26-day line before they become bullish. (Moomoo Technologies Inc. Markets Commentator Stephen "Sarge" Guilfoyle had no position in WDC at the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. 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