Cloud Computing (WCLD): Tactically bullish

5/22/2026 - The WisdowTree Cloud Computing Fund (WCLD) has a contrarian bullish setup.

Absolute and relative price downtrends remain in place confirmed by declining 26- and 40-week moving averages (WMAs). However, the volume advance decline indicator (VAD) formed a bullish divergence against the lower lows for WCLD from late February into early Apri. In addition, an early-to-mid-May breakout and retest pattern on the VAD acts as a potential bullish leading indicator for a three-month tactical bottoming pattern for WCLD.

A decisive rally above 29.89-30.20 (tactical bottom pattern neckline and declining 26-WMA) would confirm the three-month bottom with initial upside to 31.89-32.41 (declining 200- and 40-WMAs and previous support at the November and August 2025 lows) and then potentially higher toward 36.19-37.12 (pattern target and January to December 2025 chart resistance).

The rising 13-WMA and the mid-May higher low at 27.93-27.01 offer key nearby support.

One risk is that WCLD remains within a weak trend vs. the S&P 500 (SPX), but the ETF could continue to rebound from an early-April low relative to the broader market on a tactical basis.

Chart 1: WisdowTree Cloud Computing Fund (WCLD) (top), relative to the S&P 500 (center), and volume advance decline (bottom): Weekly chart

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