SNDK Watch

Tech company SanDisk Corp. (SNDK) gapped up sharply this morning and is trading more than 5.5% above the prior close, with a couple of bull phase signals to buttress the case. Volume jumped to the highest (so far) since May 26.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
SNDK $47.26

The price rise set a new three-month-chart high of $48.25 before retreating. The $47.50 region is resistance that has been tested repeatedly in the last couple of weeks.

Volume was about to reach more than double that of Friday's.

A persistant break above that level would poise SNDK for a run up to the next highest resistance at around $60.

Reversal Levels

• $60.00, +27.0%
• $47.50, +0.5%
• $47.26 <== You are here.
• $42.81, -9.4%

Longer term, SDK hit a peak of $84.81 with the tech boom in 2000, and another peak in 2006 of $79.80. It has all been downhill from there. The most recent lowest low, $5.07, was recorded in November 2008.

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.