SanDisk (SNDK), down 47% in a month...995 dollar support line 'in jeopardy'

▲ SanDisk (SanDisk, SNDK), Bear Market/AI Generated Image

SanDisk (SanDisk, SNDK) stock price collapsed by 47% in a month, and with the completion of a head and shoulders pattern, warnings of further decline have intensified.

According to BeInCrypto, a cryptocurrency specialized media outlet, on July 29 (local time), SanDisk's stock price fell by 14% on the 28th, closing around $1,096. The decline over the past month reached 47%. Despite the sharp drop, the year-to-date increase remained at approximately 362%.

The selling pressure spread across the entire memory semiconductor industry as SK Hynix's quarterly earnings fell below market expectations. Concerns about a potential slowdown in artificial intelligence demand resurfaced. Micron Technology (Micron Technology, MU), Western Digital (Western Digital, WDC), and SanDisk all declined together.

Technical trends also deteriorated. After a death cross occurred, with the 20-day exponential moving average (EMA) falling below the 50-day line, the stock price dropped by approximately 35%. Subsequently, even the 100-day line was breached, leaving only the 200-day line near $995 as a major support level. The neckline of the head and shoulders pattern also broke. This pattern indicated a potential for an additional decline of approximately 39% based on the neckline.

The Chaikin Money Flow (CMF) index, which indicates institutional fund flows, fell below 0 on June 22. The latest reading was recorded at minus 0.15. Based on option trading volume, the put/call ratio decreased from 1.54 on July 22 to 1.02, but open interest still favored a decline. 17 analysts maintained an average target price of $2,053 and a strong buy rating.

SanDisk must hold the Fibonacci 61.8% retracement level of $1,059 and the 200-day exponential moving average of $995. If $995 is broken, the next downside targets are $886 and $665. In case of a rebound, resistance levels are $1,303, $1,453, and $1,697. The earnings announcement on August 5 is considered the next volatility factor.

[Key Article Summary]

-SanDisk's stock price fell by 47% in a month and sharply dropped by 14% on the 28th.

-With the break of the head and shoulders pattern's neckline, an additional decline of approximately 39% is suggested.

-If the $995 support level is breached, the next downside targets are $886 and $665.

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