Western Digital, one of the largest computer hard disk drive manufacturers in the world, could regain its upward trend after having run out of steam.

The fundamentals support the stock with a gradual upward revision of earnings per share by analysts. The group is still undervalued and the “enterprise value to sales” ratio shows an attractive valuation of 0.46x for the current year.

Western Digital is in an uptrend in the medium and long term, but the last bearish movement returns close to a major support level. This threshold, if preserved, will enable to enjoy the bullish movement.

Investor should watch the security close to USD 38.6 to take advantage of a new upward acceleration in the direction of USD 42.6. A stop loss is placed under USD 38.6.