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SanDisk's ( SNDK ) change in character yesterday (June 9), when it stabbed down in contrast to broad market strength, was a tell-tale sign telegraphing today's follow-through. This follow-through perpetuated the first test of SanDisk's 20-day moving average since it reclaimed it in mid-April. SNDK was one of the first tech names to turn up strongly at that timw, so its behavior here will be worth watching. Note how the large gap in mid-April following an undercut of the 20 and 50 DMAs set up the persistent creep higher for the last seven weeks.
The normal expectation is the first test of the 20 DMA defines support. However, an authoritative break of the 20 DMA with follow-through probably indicates a test of the $90 strike.
Below is a daily SNDK chart for 2014 with its 20 (Blue) and 50 (Yellow) DMAs.
Twitter: @JeffCooperLive
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.