SanDisk Posts 6.11% Rally on Bullish Candle with Long Upper Shadow, Aligning with Key Support Levels

Candlestick Theory
Sandisk (SNDK) exhibited a strong bullish candle on the most recent session, closing 6.11% higher with a long upper shadow and a robust body, indicating aggressive buying pressure. Historical data reveals a sequence of large-bodied bullish candles during late December 2025, particularly on 2025-12-16 (3.69% gain) and 2025-12-10 (6.11% gain), which align with key support levels around $209.31 and $232.86. Conversely, a bearish engulfing pattern emerged on 2025-12-12 (-14.66% drop), suggesting a critical resistance zone near $206.18. These patterns highlight potential reversal points, with confluence between support/resistance levels and volume spikes reinforcing their significance.
Moving Average Theory
Short-term momentum is confirmed by the 50-day moving average crossing above the 200-day line, a bullish "golden cross" signal. The 100-day MA remains in a gradual upward trajectory, aligning with the 50-day trend. However, a divergence emerges in late November 2025, where the 200-day MA lagged behind the 100-day line during a sharp price correction, suggesting temporary weakening of the long-term trend. Current price action remains above all three moving averages, indicating sustained bullish bias, though traders should monitor for a potential 50-day MA pullback to test $213.31 (200-day level) as a critical threshold.
MACD & KDJ Indicators
The MACD histogram has shown consistent positive divergence since late December 2025, with the MACD line crossing above the signal line on 2025-12-10 and 2025-12-18, reinforcing short-term bullish momentum. However, the KDJ (Stochastic) indicator entered overbought territory (RSI >70) on 2025-12-11 and 2025-12-18, suggesting potential exhaustion in the upward move. A bearish crossover in the KDJ on 2025-12-09 (-2.67% close) created a divergence with price, hinting at a possible retracement. Traders should watch for a MACD histogram contraction alongside a KDJ bearish crossover as a high-probability reversal signal.
Bollinger Bands
Volatility has expanded significantly in recent sessions, with the price touching the upper Bollinger Band on 2025-12-18 (closing at $219.46), indicating overbought conditions. Prior to this, a period of narrow band contraction occurred in mid-December 2025 (e.g., 2025-12-15 to 2025-12-17), signaling a potential breakout. The current price position near the upper band, combined with elevated volume, suggests a high likelihood of a pullback toward the $206.83 to $213.31 range.
Volume-Price Relationship
Volume has surged during key upward moves, with the 2025-12-18 session recording 9,873,427 shares traded—well above the 30-day average of ~7.5 million. This validates the strength of the recent rally. However, a divergence appears in late November 2025, where declining volume accompanied a sharp price drop (e.g., 2025-11-20, -20.33% close with 26.59 million shares), indicating weak sustainability in bearish moves. Current volume patterns suggest institutional buying, but a drop below 7 million shares could signal waning momentum.
Relative Strength Index (RSI)
The 14-day RSI has oscillated between overbought (>70) and oversold (<30) zones multiple times in late 2025. On 2025-12-18, RSI reached 72, confirming overbought conditions, while a reading of 29 on 2025-12-03 (-5.34% close) signaled oversold territory. A bearish divergence emerged on 2025-12-11 (RSI 75) as price made a higher high but RSI failed to surpass prior peaks, suggesting a high probability of a retracement.
Fibonacci Retracement
Key Fibonacci levels derived from the November 2025 $189.68 low to the December 2025 $244.19 high include 38.2% ($226.75) and 61.8% ($204.45). The current price of $219.46 is approaching the 38.2% retracement level, which aligns with a potential resistance zone identified by candlestick analysis. A break above $226.75 could target the $241.61 prior high, while a pullback to $204.45 may test the 50% retracement level as a pivot point.