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Tuesday, June 19, 2007 

WDC Pull back , CVTX Breakout

Chart courtesy of stockcharts

Western Digital shares were down on Monday more than 4% or 0.81$ to 18.97$ after J.P. Morgan downgrade the stock to neutral from overweight. J.P. Morgan cited concerns about still-tenuous pricing dynamics in desktops and notebooks, increasing manufacturing parity and potential for a slowdown in Western Digital's notebook and retail revenue momentum. The technical chart shows that stock is trading in a Bullish Mode since the lows of April, after that stock initiated a rally from 16.50 to 20.25$ in just two months, gaining nearly 20% ( actual values ). Almost all indicators still continue in Bullish area, however the sentiment in stock has changed in the short term according to the CCI and RSI indicator, both are losing ground and CCI already crossed below 100 a sign of weakness. In my opinion stock initiated just a correction after recent rallies, anyway pay attention to 18.70$ ( 200 dma ) that is the major support for an eventual continuation of drop in share price.

Chart courtesy of stockcharts

Looking at the chart above stock broke out 11.50$. Indicators are all in favor of Bulls with K line back above D line and MACD back above 0. In addition stock is trading above 50 dma and 200 dma. Gap was finally filled.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's all. Have a nice evening !!!

AC

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  • I'm a 43 year old Independent Trader using proprietary technical analysis with more than 18 years experience of investing in the US stock markets. I started this blog in 2006 simply as a way to share my thoughts about capital, risk management, and trading. My blog contains only my personal opinion and is provided for informational purposes only.

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