Bull & Bear: Western Digital Corporation

Shares of Western Digital Corporation WDC are trading higher on the session by 0.58%, at $34.52. Given the stock's recently slide, you have to wonder where it is heading next… Bulls: Bulls will note that Western Digital Corporation is trading near a key support/resistance level, at $34.00. Whether shares hold or break the level will ultimately decided the medium-term direction of the shares. Bulls will note that the stock is oversold and has corrected into an upward-sloping 200-day moving average; this is typically grounds for a short-term rally. Bulls will also note that Western Digital Corporation has been seeing an influx of call buying over the past few days. A bullish trader could buy the July $35/38 call spread for a net debit of $0.95. Bears: Bears will note that the 20-day and 50-day moving averages have tipped lower and are now both downward-sloping. This is an indication that shares have been under distribution. If shares were to break down, through the $34.00 level, support does not come into play until $32.68, then $30.00. A bearish trader could buy the July $34/30 put spread for a net debit of $1.04. Western Digital Corporation designs, develops, manufactures and sells hard drives. It sells its products worldwide to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) for use in computer systems, subsystems or consumer electronics (CE) devices, and to distributors, resellers and retailers. Its hard drives are used in desktop computers, notebook computers, and enterprise applications such as servers, workstations, network attached storage, storage area networks and video surveillance equipment. Its hard drives are used in CE applications, such as digital video recorders (DVRs), and satellite and cable set-top boxes (STBs).