Western Digital +5.3% Breaks Resistance, Eyes $185 Target
$Western Digital(WDC)$
Western Digital Corp (WDC) Surges +5.26%: Data Storage Leader Breaks Resistance, Eyes $185 Target Zone
Latest Close Data
WDC closed at $175.01 on December 19th, gaining +5.26% (+$8.75) with strong volume of 9.15M shares.
Stock sits just 7.3% below its 52-week high of $188.77, demonstrating robust momentum in the data storage sector.
Core Market Drivers
AI and cloud computing demand continues driving storage solutions growth.
Enterprise data center expansion and edge computing infrastructure investments are boosting WDC's HDD and SSD product lines.
The company's strong Q4 earnings performance with $6.90 TTM EPS reflects operational efficiency improvements.
Technical Analysis
Volume surged 29% above average (1.29 ratio) signaling institutional accumulation.
MACD shows bullish divergence with DIF at 7.02 above DEA at 7.46, though momentum is consolidating.
RSI(12) at 57.6 indicates healthy upward bias without overbought conditions.
KDJ signals show K-line at 47.9 suggesting potential upward reversal from oversold territory.
Key Price Levels
Primary Support: $158.17 (strong buying zone)
Immediate Pivot: $174.17 (yesterday's resistance, now support)
Strong Resistance: $181.49 (today's high, breakout level)
Valuation Perspective
Trading at 25.37x TTM P/E and 5.91x P/S ratio, WDC shows reasonable valuation compared to tech sector averages.
Forward P/E of 21.66 suggests growth expectations remain robust with strong ROE of 29.71%.
Analyst Targets
24 analysts maintain coverage with average target of $184.04 (range: $92-$250). Strong institutional backing: 5 Strong Buys, 18 Buys, 5 Holds reflecting confidence in storage market recovery.
Weekly Outlook
Expect consolidation between $170-$182 with potential breakout above $182 targeting $188-$195 zone. Volume patterns suggest institutional accumulation continues supporting upward bias.
Risk Disclaimer
This analysis is for informational purposes only and not investment advice. Past performance doesn't guarantee future results.
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