WDC is showing signs of life after holding one of the most important support zones on the chart.

The stock declined from approximately $800 to the $400–$407 area, creating a major test for the larger Elliott Wave structure. So far, that support zone has held. More importantly, WDC has responded with a strong advance, suggesting buyers are aggressively defending the area.

That is encouraging, but the recovery has not yet received full confirmation.

The next major level is approximately $580, representing the top of the previous B Wave. A decisive break above that level would provide much stronger evidence that the decline has ended and that WDC is beginning a larger reversal. If the bullish structure confirms, the next major upside objective becomes the $775 area.

Beyond that, the long-term Elliott Wave count points toward an even larger potential Wave 3 target of approximately $1,500–$1,600.

However, the count has a clear line in the sand.

A move below $400 would invalidate the current bullish interpretation.

For now, the battle is between the powerful recovery from $400–$407 and the important resistance waiting near $580.

The larger structure can currently be labeled as:

Wave 1: $29 to $800
Wave 2: $800 to $407
Wave 3: Potential target of $1,500–$1,600

WDC's Wave 1 was an extraordinary advance, carrying the stock from approximately $29 to $800. That move established the larger bullish cycle and demonstrated the magnitude of the trend when momentum is firmly to the upside.

Following that powerful advance, WDC entered a major correction.

The stock declined from approximately $800 to $407, retracing a significant portion of the previous rally. Deep corrections can be uncomfortable, but Elliott Wave analysis allows for substantial Wave 2 retracements as long as the structure remains intact.

That is why the $400 area is so important.

The current count remains valid as long as the stock holds above the Wave 1 starting area defined by the invalidation level. Under this analysis, a move below $400 would invalidate the bullish Wave 1–Wave 2 interpretation and force a reassessment of the larger structure.

So far, however, WDC has done exactly what bulls needed to see.

The $400–$407 zone has held.

And the response from that area has been strong.

The most encouraging aspect of the current chart is not simply that WDC stopped falling.

It is the strength of the rebound.

A weak bounce from major support could suggest temporary short covering or a minor relief rally before another decline. But WDC has been advancing strongly from the $400–$407 area, creating the possibility that an important low has formed.

That does not yet prove that the larger Wave 2 correction is complete.

Confirmation still requires the market to overcome important resistance.

But the price action has shifted from “Can $400 hold?” to “Can the recovery break through the next major barrier?”

That is a meaningful change.

The longer WDC holds above $400 and the more strongly it advances, the more attention should turn toward the resistance levels above.

The first major one is approximately $580.

The $580 area represents the top of the B Wave and is the critical level that needs to break to provide stronger confirmation of a potential reversal.

This is where the current rally faces its biggest technical test.

WDC can rally strongly from $400 and still remain within a larger corrective structure. That is why simply seeing the stock move higher is not enough to declare victory.

The market needs to demonstrate that it can overcome the previous B Wave high.

A decisive break above $580 would be significant because it would indicate that the recovery is no longer confined beneath that major corrective resistance.

In simple terms:

Holding $400–$407 = support is working.
Breaking $580 = reversal receives stronger confirmation.

That distinction is important.

Until $580 breaks, there remains the possibility that the current advance is part of a larger corrective pattern. Once that resistance is overcome, the bullish interpretation becomes considerably stronger.

The next major upside focus would then move toward approximately $775.

If WDC can break the top of the B Wave near $580, the chart could set up a potential move toward $775.

That level is important because it brings the stock back toward the upper portion of the previous trading structure and closer to the major long-term breakout area near $700 and above.

A potential sequence could develop as follows:

$400–$407 holds → strong recovery continues → $580 breaks → reversal confirms → advance toward $775.

Of course, the market may not travel in a straight line. A breakout through $580 could be followed by consolidation or short-term pullbacks.

What matters is whether the former resistance becomes support.

That would demonstrate that buyers have taken control of the trend rather than simply producing a temporary rebound from oversold conditions.

A sustained move toward $775 would also bring the larger Elliott Wave structure into sharper focus.

The longer-term bullish scenario requires another important level to eventually break:

$700.

The proposed Wave 3 projection points toward approximately $1,500–$1,600 if WDC can establish a confirmed upside breakout and the Wave 3 structure develops according to the larger count.

The long-term projection is based on a 1.618 extension of Wave 1.

The logic is straightforward:

W1: $29 to $800
W2: $800 to $407
Potential W3: $1,500–$1,600

But before those much larger targets can become the primary focus, the stock needs to demonstrate that the Wave 2 correction has truly ended.

The first confirmation comes from the $580 breakout.

The next major step would be reclaiming the $700 area to the upside.

A sustained break above $700 would represent a major technical event because it would place WDC back above a significant portion of the previous decline and strengthen the argument for a developing long-term Wave 3.

At that point, the $1,500–$1,600 projection would become increasingly relevant.

Every Elliott Wave count needs a clear point where the analysis is proven wrong.

For this count, that level is:

$400.

A move below $400 would invalidate the current bullish Wave 1–Wave 2 interpretation.

That does not mean WDC could never move higher again. It simply means this specific count would no longer be valid and the structure would need to be reevaluated.

This is one of the advantages of defining an Elliott Wave structure clearly.

The analysis is not simply saying, “I think the stock will go up.”

It provides a roadmap with specific levels:

These levels allow the market itself to determine whether the count remains valid.

WDC is currently at an important point in its Elliott Wave structure.

The stock has held the critical $400–$407 support zone and responded with a strong advance. That is the first bullish development. However, the recovery still needs confirmation.

The key resistance is:

$580.

That level represents the top of the B Wave and needs to break to confirm a potential reversal. A successful breakout could open the path toward approximately $775.

Beyond that, the long-term structure becomes increasingly bullish if WDC can eventually break $700 to the upside. Under the current Elliott Wave count, a developing Wave 3 could then target approximately $1,500–$1,600, based on a 1.618 extension of the original Wave 1.

For now, the structure is clear:

W1: $29 to $800
W2: $800 to $407
Potential W3: $1,500–$1,600 if the larger upside breakout develops
Invalidation: Below $400

Short term, the market has already passed its first test by holding $400–$407.

Now comes the more important challenge.

Can WDC break $580?

If it does, the current recovery could begin transforming from a strong bounce into a confirmed reversal with $775 as the next major upside target—and potentially much higher levels beyond that.