Toshiba Crushes Storage Stocks: Where Western Digital And Seagate Bounce

[music] Good afternoon everyone. Happy Friday and welcome to my ProCharts video market movers edition. My name is Jake Sweeney, protrader here over at Verify Investing. And yes, wrapping the week up so far. Uh, I got the highf flyers of today that I'll be covering and then finishing off with some honorable mentions. Um, but let's just dive into the charts, guys. First up is WDC and Seagate seeing two huge sell-offs today as out of Japan Toshiba said they can double their production of their hard drives giving uh shareholders of WDC and Seagate under a lot of pressure on let's go into the charts and just see how much far uh they fell today. All right guys, let's get into it. Looking today, guys, so right here we're seeing a a technical pseudo wedge pattern here. So, usually these break one way or the other, but it's usually on a technical basis, not out of news. But with that, we closed yesterday about 463. And since then, we sold off all the way down to 39657, a 14% move to the downside verse recovering currently down about 10% um with market close coming here shortly. I'm curious to see if we can close above this key support level right here. as we see a lot of wicks into this level and price right now just kind of sitting on this level trying to close above it. So where did we get support at? Well, once we pierce that $400 level, there was for for sure support there, the psychological level, but we didn't even trend lower where there's this large gap fill here in the charts at $390.99. Buyers stepped in beforehand at these cheap prices and pushed it back up. So now where are we going to have resistance on WDC? Well, first we want to try and close above this as I said and now breaking below it just a little bit. Um but now we have to get above this ascending trend line that we broke below. And then we have this descending trend line uh that was has been capping price since July 31st, 2026. Now we're going to have to compete with both of these trend lines to continue on higher. Um, next, as you see, if we can get past that, there's this nice gap fill here in the charts at 47369. If we can get past this resistance level, I will be sitting here at the 475 473 level for a nice short at that gap fill. All right, looking at Seagate as well. Yeah, WDC was red and Seagate is although looking like it has a nice day, it's down 10% still. So from here yesterday we kind of had this bullish consolidation but this is more ups sloping rather than a downs sloping or flat bull flag. So um didn't give much weight to that. Anyways we gapped down from this all the way about 16% to the downside piercing $800. And just so you guys know in the Apex Live day trading room this is our finesse. This is our skill right here. One of our traders was sitting there long with an open order at 800 on a pierce of that level and since then as we can see uh price was able to push back up. We a were able to profit off that trade. So if you're looking if you like to that style of trading come check us out at the Apex Live Day Trading Room. Every single day we're trading stocks and ETFs. Back to the charts though. Now that we're going to have to uh let's focus on support first. So, we could credit this trend line right here from this January 29th, 2026 trend line cutting through price action right here. We see we bounced off it here, bounced off it in September and today cleanly another nice bounce. also filling the gap here at 801 and then and then if we were to trend lower there's the shelf here at 76697 where was my next kind of line defense for Seagate should it get there uh to the upside we will have to push past this 86265 level that we will have to reclaim first and then we have to contend with this downs sloping trend line that we see was halting price earlier this week um this test would be about 9:15 15 to 912 on Seagate. All right, looking at AOI and yes, it is on breakout watch just on Wednesday. Since then, we are now up 16% on applied opio electronics. So, with that near-term, I'm watching this gap fill here in the charts at 124.82. That could be a quick day scalp come Monday on a swing basis. We're going to let Well, one, we got a We got to see if AOI can break out of this. We have two sharp moves, but our last test of this trend line wasn't till August. So, until proven otherwise, this trend line still holds the res. Should we push higher, there's this other gap fill here at 154.89. And then this is where I'm swinging short at is there's this pivot top resistance here, 17341. See a lot of price action on this area. And then if we were to shoot up into this trend line right here as we flip polarity from support to resistance right here rejecting price rejection rejection now up in this zone about a $5 zone would be this trend line test also with this pivot top. That is where I'm shorting a AOI. Well, first we got to break out um NBIS next. I think this one's going to continue on higher rather soon. Definitely bullish on Nibius. So, a lot of wicks into this area showing um showing sellers are still defending this 250 area pretty strong, piercing it yesterday, but getting shut down, not having enough strength today. But what I'm watching is this trend line here slowly steady since July. all the way pushed up here. We've been making these lower or uh higher lows and not even piercing this trend line to the downside and now consolidating. After making these higher lows, this 250 is prone and should be weak for a break to the upside. Okay. Now, do we do break that? Where's the next resistance? This 26447 level, this will be the next main resistance for Nibius. And X marks the spot. That is right. Right here we have this down sloping trend line. This only has two hits, two clean hits. This is still kind of an early trend line, but on a third test um on a third test of this trend line right here exit the mark spot at 265 lining up with this pivot top. That's where I'm short NBIS. Okay, now this one is a confirmed breakout. Lamb Research as we see we're pushing up out of this down slipping trend line that we've been capping price and then we confirmed we got that daily confirmation and now we're continuing on higher slowly grinding. I can see today we're trying to kind of now find near-term support at this 345 level now wicking into it and now printing a nice dogee candle going into Friday's close. Should we continue on higher? There's this pivot shelf here at 39307 and then the 786 from this 43850 high to this 250 low. The 786 here in this $5 zone on Lamb Research. This would be a good short level here. Um, or you could wait, be more conservative and wait for a gap fill here up up at 434 or double top after a nice deep healthy pullback, especially on a sharp move favors a pullback to the downside. All right, looking at AVGO, this is one, this is one for the contrarians and the momentum traders. This is how I would play this short and long. Well, one, as a trader, I need volatility. And with the volatility that we're getting in AVGO earlier this year, I'm just not seeing it as much uh later this year. So, it hasn't been on my watch list as much. But when it does, I have this two factor setup to the down or to the upside. Should we push to 380? There's this large gap fill here at the charts. This 236 Fibonacci and this downs sloping trend line all kind of converging in this 375 to 380 area. That is where I'm going to short AVGO on a sharp move. Okay, I would play it long too, but we have to come down. Uh if we come down to this 335 gap fill here in the charts and then this swing low here at 33142, that is where I would go long on AVGL. But right now, just sitting kind of slowly grinding. Um yeah, not attracted to me. All right, guys. And to finish today's session, a honorable mention for Lululemon, uh, breaking lower today at new 52- week lows, uh, coming in at 9341. And now, this is kind of speculative, but this is right after Nike's earnings. And just with that, I think it's the consumer is just getting beat up uh, when it comes to the markets and their pockets. And I think we might be trending lower for Lululemon. Um, I, you know, I I like the apparel. You know, it's it's great and all. I think they got a good brand, but I I'll take cheaper prices. So, if we get there, there's this gap fill here. Uh, so this is on the weekly, but on the daily, there is a gap fill on the daily at 8964. Should we trend lower? And then we have this nice uh support consolidation shelf showing a lot of rejection on this area till we capitulated above it. Should we come back down? Major major support here at 8109. All right, guys. Thank you guys so much for joining me on today's episode going into market close. I hope you guys had a great week of trading. And stay tuned for Monday, October 5th at 1 p.m. My new show, The Options Conversion Secret from Chart to Chain is launching Monday at 1 p.m. every single day with my co-host and uh junior trader Tabby. Come see us and check us out. get introduced to the options world. Whether you're a beginner or an intermediate trader, I will hope to bring plenty of value for you. All right, guys. Thanks again so much and have a great day. Take care.