Western Digital Corp. (NASDAQ:WDC) stock fell about 4% in Monday premarket trading as investors pulled back from higher-risk technology stocks. Nasdaq futures fell 0.70%, while S&P 500 futures declined 0.30%.
The stock’s strong run over the past year may also be adding volatility. Western Digital has gained nearly 480% over the past 12 months. As a result, investors may be quicker to take profits when market sentiment weakens.
Technical Analysis
Western Digital remains under pressure in the intermediate term. The stock trades below its 20-day SMA of $486.57, 50-day SMA of $548.43 and 100-day SMA of $493.53.
However, shares remain above the 200-day SMA of $358.27. That suggests the longer-term uptrend remains intact.
Momentum is also showing signs of improvement. MACD is above its signal line, while the histogram remains positive. This indicates that selling pressure may be easing.
Resistance sits near $525, while support is around $430.50. A break below support could increase selling pressure. Meanwhile, a move above resistance could strengthen the recovery.
Analyst Outlook
Western Digital has a Buy consensus rating and an average price forecast of $649.79.
Citigroup maintained a Buy rating and lowered its price forecast to $740 on Aug. 7. TD Cowen maintained Buy and raised its forecast to $540 on Aug. 6. UBS maintained Neutral and lowered its forecast to $525 on Aug. 6.
Benzinga Edge Rankings
Western Digital scores strongly on Momentum at 99.2, Quality at 96.95 and Growth at 99.71, according to the Benzinga Edge scorecard. However, its Value score is much lower at 6.07.
The rankings point to a high-growth, momentum-driven stock with strong quality characteristics. However, its weaker Value score suggests shares do not screen as inexpensive after their sharp rally.
Price Action
Western Digital shares fell 4.01% to $441 in Monday premarket trading, according to Benzinga Pro data.
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