Tuesday, August 24, 2010

SanDisk Corp. (SNDK) - Leads The Market Lower

SanDisk Corp. (SNDK) is a stock that has been a great performer over the past 18 months but like all good things, nothing lasts forever.

Above is a daily chart of SNDK and as you can see the major uptrend line which began in December of 2008 has been broken last month. There was an attempt earlier this month at the trendline but the stock was unable to penetrate this line and is now heading south.

SanDisk Corp. (SNDK) gapped sharply lower today breaking the support lows from last July. The stock is clearly weaker than the overall market as the S&P500 is still above its July lows. The next big level to watch for will be the 200 day moving average which comes in at 35.24 as of today's close. Being that the stock is showing signs of relative weakness, my feeling is that this average will provide little if any support to this stock but that remains to be seen.

Today SanDisk Corp. (SNDK) closed at 38.25 which is down 6.04% from Monday's close.

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