When putting together your watch list, look for stocks with an 80 or higher RS Rating. Western Digital now meets that criteria, with a jump from 74 to 85 Friday.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating identifies technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against other publicly traded companies.
History reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they begin their biggest climbs.
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Western Digital is now considered extended and out of buy range after clearing a 41.47 buy point in a first-stage cup with handle - for the second time! Maybe this time it will hold. If it does, then maybe we can look for a follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
WDC Earnings
Western Digital posted 0% earnings growth in its most recent report, while sales growth came in at -41%.
Western Digital holds the No. 7 rank among its peers in the Computer Software-Storage industry group. SMART Global Holdings and NetApp are also among the group's highest-rated stocks.
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