Technical Analysis of Financial Markets

Friday, September 01, 2006

SanDisk Corp. (SNDK)

Since gapping-up over a month ago, SanDisk has rallied almost 60%. However, with overbought stochastics at their highest attempting a crossover and RSI hovering above 70 for the first time in months, overbought signals seem abound. Historically accompanying more sell volume than buy, $60 has interchanged between support and resistance and is currently serving as resistance. A short-sell at current levels near $60 may serve as a low-risk entry to a possible target towards the uptrend support at $55.50-$56. A break and close below the uptrend support may signal the end of the rally and a trend reversal. From then on, watch Fibonacci retracement levels for support.

No comments: