In our last update on Western Digital (WDC) , we said, "Prices have stayed in a narrow range with small spinning tops or doji patterns. Jan. 26 has been the "high day" and a close below the low of the 26th will be a short-term sell signal. A close below $78 will weaken the picture and could precipitate a pullback to the $75-$74 area." Let's check on the latest charts.
In this updated daily bar chart of WDC, above, we can see that prices have closed below $78 and have weakened to the $75-$74 area as per our previous update. Prices could close below the rising 50-day moving average line. The On-Balance-Volume (OBV) line has begun to trend lower in the past month. Momentum has turned negative but is not yet giving us a bullish divergence with price.
In this three-year weekly chart of WDC, above, we can see that prices are well above the rising 40-week moving average line. The weekly OBV line shows a recent down-tick but not a downtrend. The Moving Average Convergence Divergence (MACD) oscillator is in a strong upward trajectory, but it looks like it is narrowing toward a possible crossover and liquidate longs sell signal.
Bottom line: The share price of WDC has weakened and could edge lower toward the $70 area. Prices have not made a top formation, so there does not seem to me to be a technical reason to look for a significant decline. However, it may take a number of weeks for price to stabilize and try the upside again.