November 5 - Chart of the Day UPDATE for Western Digital Earnings

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Check out the earnings results and price movement after this article was posted.

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Originally posted October 24, 2024 before earnings.

Leading data storage provider Western Digital (WDC) is scheduled to report earnings after market close on Thursday.

We'll take a look at their chart from a price action technical analysis perspective to provide levels of interest in both directions and where price could be heading by next Friday November 1.

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Monthly Chart 

On the monthly chart we can see that after setting its all time high (ATH) about a decade ago price has moved swiftly both down and up.  Great for traders, not so much for buy and hold investors.

In fact, we can see that price has crossed a change control zone roughly between $58 and $64 a whopping 24 times since 2013.

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Weekly Chart

On the weekly chart we can see with much more clarity the intense volatility throughout the years and the battle between the bulls and the bears around that change control zone. 

The market is implying about a $4.97 move in either direction as marked on the weekly chart by Friday November 1st.  Share price has risen during the week of earnings 4 of the last 8 quarters.

Could earnings be the catalyst that pushes price back down into the change control zone yet again or could price break up and away this time?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans. 

So what's next? 

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