While much of the broad market has rallied, there have been stocks biding their time and gathering strength for the next move higher.
Western Digital (WDC) is one of those stocks.
Quiet Range
After a very strong rally from May to July, the stock has done nothing besides settle down in a three- point range.
Good Relative Strength
The important thing to note is that the stock didn’t break its range to the downside while the rest of the market was selling off in August. This indicates a good amount of relative strength provided by convicted buyers.
Key Level To Watch
A move to 103 would confirm the breakout, but an anticipatory long here with a tight stop is a good trade as well.
