Western Digital Corp. (NASDAQ:WDC) stock fell about 2% in Thursday premarket trading as technology stocks faced broader selling pressure. Nasdaq futures fell 0.83%, while S&P 500 futures slipped 0.30%.
The weakness comes after a strong longer-term run for Western Digital. As a result, traders are watching key technical levels for signs of support.
Technical Analysis
Western Digital remains in a long-term uptrend. The stock trades 25.7% above its 200-day simple moving average of $376.08.
However, the intermediate trend has weakened. Shares trade 5.7% below the 50-day SMA of $501.40 and 7.1% below the 100-day SMA of $509.06.
The 20-day SMA also sits below the 50-day SMA. That bearish crossover could keep rallies under pressure until the stock recovers its intermediate-term averages.
Meanwhile, the relative strength index stands at 50.34. That signals neutral momentum, with the stock neither overbought nor oversold.
Resistance sits near $480. A move above that level could put the 50-day SMA back in focus. Support stands near $430.50.
Western Digital hit its 52-week high in June before reaching a swing low in August. Traders are now watching whether the latest pullback remains orderly.
See More: Top Value Stocks
Analyst Outlook
The stock carries a Buy consensus rating with an average price forecast of $649.79.
Citigroup maintained a Buy rating but 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
Benzinga Edge gives Western Digital a Momentum score of 99.13, Quality score of 96.44 and Growth score of 99.74. Its Value score is much lower at 5.52.
The scores point to strong momentum, quality and growth. However, the weaker value score suggests investors are paying a premium for that performance.
If broader markets stabilize, those characteristics could support buying near key technical levels. Continued technology-sector weakness could instead keep Western Digital below its 50-day average.
Top ETF Exposure
Western Digital has a 4.56% weighting in the Alger Concentrated Equity ETF (NYSE:CNEQ), a 4.37% weighting in the Pacer US Large Cap Cash Cows Growth Leaders ETF (NASDAQ:COWG) and a 4.45% weighting in the Invesco Dorsey Wright Technology Momentum ETF (NASDAQ:PTF).
Flows into or out of these ETFs can contribute to buying or selling pressure in Western Digital shares.
Price Action
WDC Price Action: Western Digital stock fell 2.08% to $472.25 in Thursday premarket trading, according to Benzinga Pro data.
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