$WDC Western Digital (NASDAQ:WDC) fell out of the same bearish ascending wedge that puts DOCU stock at risk. After that reversal, the last of Thursday’s big stock charts still looks bearish:
Recent trading, including a 2.9% decline on Wednesday, pushed WDC stock below its 200-day moving average. And while DOCU stock has seen light volume during the last leg of its gain, Western Digital shares are seeing heavier-than-usual volume as they decline. With the 200-day moving average broken, there’s no clear support level for the stock on the near-term horizon.
WDC stock is cheap — but memory chipmakers usually are. Peer Micron Technology (NASDAQ:MU) too has seen some weakness in recent trading. For both WDC and MU, pricing is key, and both charts suggest investors are worried that recent pricing stabilization may reverse.
The weakness in memory plays is particularly concerning given that the rest of the chip sector is sizzling, with breakouts in major names like Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC) and Qualcomm (NASDAQ:QCOM). Investors betting on the broad trends that can boost the semiconductor industry — Big Data, Internet of Things, and self-driving cars among them — seem to be looking to markets outside of memory. The WDC stock chart suggests that focus will persist.