Trade Ideas Newsletter 08/30/2016

WDC is at the start of a significant breakout

Based on the preceding analysis in WDC, traders should determine that their account can handle increased risk from a new position. Also be sure that WDC is not too correlated with your existing position. Lastly, excellent traders always check how a new addition relates to not just their overall account, but the prevailing market action as well. For example, check the S&P 500. Is it trending up or down recently? Has it recently exceeded key resistance or support levels? Be sure to align your trading actions on WDC with the overall market so you are not swimming against the tide.

CHART

Currently the calculated sentiment levels, evaluated by Traders For Wealth, have shown an increasingly positive bias toward WDC. Also, the price action in WDC has been moving on up. This is a strong sign for a potential upside breakout. Traders should view this as a bullish trade and make sure it aligns with the overall market mood, and their current positions.

Western Digital Corp (WDC)

Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage solutions that enable consumers, businesses, governments and other organizations to create, manage, experience and preserve digital content. The Company’s product portfolio includes hard disk drives (HDDs), solid-state drives, direct attached storage solutions, personal cloud network attached storage solutions, and public and private cloud data center storage solutions. HDDs are its principal products. Its products are marketed under the HGST, SanDisk and WD brand names. Western Digital serves original equipment manufacturers, distributors, resellers, cloud infrastructure players and consumers. It has manufacturing facilities in China, Japan, Malaysia, the Philippines and Thailand, as well as sales offices throughout the Americas, Asia Pacific, Europe and the Middle East. Its subsidiaries include Hitachi Global Storage Technologies Holdings Pte. Ltd. and SanDisk Corporation.