Company Description: Western Digital Corporation engages in the design, development, manufacture, and sale of hard drives worldwide. It offers hard drives, including 3.5-inch, 2.5-inch, 1.8-inch, and 1.0-inch form factor drives under WD Caviar, WD RE, WD VelociRaptor, WD Scorpio, WD Elements, WD AV, My Passport, My Book, My DVR Expander, and WD GreenPower Technology brand names. The company’s hard drives are used in desktop computers, notebook computers, enterprise storage, workstations, video surveillance equipment, networking products, digital video recorders, satellite and cable set-top boxes, and external storage appliances. Western Digital Corporation sells its products to original equipment manufacturers and original design manufacturers for inclusion in computer systems or subsystems, distributors, resellers, and retailers. It has a collaboration agreement with NEC Electronics Corp. to promote the SuperSpeed Universal Serial Bus 3.0 standard, an interface to be used in a range of electronic devices, including personal computers (PC), PC peripherals, and digital appliances. The company was founded in 1970 and is headquartered in Lake Forest, California..

Our Analysis: The shares of Western Digital Corp. 'WDC' moved sharply lower on heavy trading volume on Friday. They finished the day by closing below a recently established support level. Additionally the shares of 'WDC' are a component of the Disk Drive Index 'DDX' which I have rated as moving lower from its current levels. These are both bearish trading signals for the shares of 'WDC'. I see the shares of 'WDC' continuing to move lower and test $39.60/share, the point from which they gapped higher on the open of trading on December 16th of last year. If the shares of 'WDC' close below that level, then I expect them to continue to move lower and test $39.16/share, a point of downside support established on November 16th of last year. I see upside resistance on the shares of 'WDC' @ $44.69/share, and have set my stops accordingly at $45.07/share.