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By: Zev Spiro

SanDisk Corporation (SNDK) had a negative divergence present, on the weekly chart, between mid June to mid January. The divergence was identified as the price made higher highs, while the Moving Average Convergence Divergence (MACD) indicator put in lower highs.

Recently, a bearish rounding top pattern is forming on the daily chart. Momentum picked up to the downside, last Friday, accompanied by heavy volume. In addition, an important sell signal was triggered when the price broke below the 50 day simple moving average. A short opportunity, therefore, presents itself by shorting the bounce, versus the 50 day moving average. This is a short term trade idea for swing and active traders, with a shorter time frame.

Target: $41, which is back to where the pattern began. The $41 level is also the high of an unfilled breakaway gap from November 22, Protective Stops: trigger on a close above the minor down trend line.

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Have a great weekend!

If you are interested in receiving Zev Spiro’s market letter, please email zevspiro@oripsllc.com subject “T3”

*DISCLOSURE: No position. Plan to initiate position before the open.

This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.

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