Western Digital (WDC) made a low for 2016 in May and it has been "stair-stepping" its way higher since. WDC can probably move higher from here but some profit-taking and overhead resistance could stall the advance in the weeks ahead.
In this one-year daily bar chart of WDC, below, we can see that prices have doubled from their May nadir. If you were smart enough or lucky enough to buy WDC at $35, it wouldn't be much of a reach to me to assume you might be considering taking some profits at $70. It is easy to find examples of stocks stalling at levels that represent a double or a triple or more from a base level. This chart also shows a bullish golden cross of the 50-day moving average going above the slower-to-react 200-day average line in early September.
The daily On-Balance-Volume (OBV) line is easier to "read" than the volume histogram, and shows a steady rise -- confirming the price advance. In November and December, the 12-day momentum study makes new highs, along with the price action, so there is no bearish divergence here to give us pause.
In this three-year weekly chart of WDC, above, we can see the 2015 to 2016 major decline and the recovery from the May 2016 low. Prices are above the rising, 40-week moving average line, and the weekly OBV line has been very strong since early August, confirming the price advance.
The weekly Moving Average Convergence Divergence (MACD) oscillator has been bullish since September, when it crossed above the zero line. During the 2015 decline for WDC, it halted its slide in the $75 to $90 area. This former support area could act as resistance to WDC's advance, as old longs may be looking to "get even" after being underwater for months. This potential resistance could stymie a rally for WDC.
Bottom line: I would trade WDC from the long side, risking below $60 even though gains may be slow going in the weeks ahead.