[WDC] update

Chart from the backlink shows that support was expected in the current level due to presence of the invisible but important lower rail of the horizontal channel.  Since then the chart got a little bounce but now I count blue 4 of 4 as complete with blue 5 on deck.  It will probably show some more volatility in this region before finally breaking down dramatically with the rest of tech into the end of the year.

If you are new to the blog you might enjoy quickly following the backlinks to my first post where WDC traded at $105 and I circled the top to be in the 105-115 range to account for a throwover the upper rail. 

In that post I wrote, "WDC has been providing good value to people all this time.  As a result,t hey have 5.38bn cash and only 2.41 bn debt.  Trailing PE is 16 and forward is 12.  PS 1.64, BK 2.82.  These are quite respectable numbers across the board.  From every outward appearance, WDC is a solid buy.  So why can I confidently predict a major collapse in the share price of this company over the next 5 years?  Why am I confident enough to write it down and promise never to erase this post?

The answer of course is the chart."

OK, now it is at $84 having just endured a dip to $68.  The valuations are better than before.  Time will tell but I would not be a buyer of the shares here.