Chart of the Day: Sandisk Stock Looks Ready to Bounce Back -- Barrons.com

By Doug Busch

Sandisk is emerging as a major beneficiary of the AI infrastructure boom, with growing demand for flash storage driven by artificial intelligence, cloud computing, and expanding data center capacity.

Despite these powerful industry tailwinds and the company's longer-term growth opportunities, the stock has recently faced considerable selling pressure, now trading 64% below its 52-week high.

But the selling may now be overdone, potentially creating an attractive setup for the bulls to step back in.

With the underlying growth story still intact, I'm watching closely to see whether SNDK is looking for a meaningful reversal and another leg higher. Peer Micron has fared a bit better, trading 39% below its annual peak made on June 25 which jumped 16% and completed a bullish island reversal. However, it never traded higher than that session's intraday high, a red flag.

Another factor favoring technology stocks is seasonality, as the second half of November is often strong. Additionally, the Anthropic IPO coming next week should provide optimism. Let's remember the positives for these stocks. AI is creating a massive storage opportunity, and demand is outpacing supply. Sandisk has also signed multiyear agreements with major customers providing greater visibility.

Let's take a closer look at the daily and weekly charts to see what the technical picture is telling us.

Looking at the daily chart, the ratio chart against peers by the VanEck Semiconductor ETF has remained in a steep downtrend since late June. Prior to that inflection, the stock staged an extraordinarily explosive run, advancing nearly 900% year to date into its late-June peak. However, aggressive distribution took hold at the highs, triggered by an exhaustion doji on June 22 that served as the centerpiece of a bearish island reversal completed on June 23.

Round number theory subsequently witnessed the unwinding of that parabolic impulse. Over the ensuing five weeks, shares plunged from $2,354 down to the precise $1,000 threshold, where responsive demand finally emerged via a bullish morning star pattern on July 30.

Recent daily candlestick dynamics indicate that selling pressure is once again reaching exhaustion near this multi-month floor, highlighted by a bullish harami on Nov. 6, a spinning top on Nov. 9, and a doji on Nov. 10. If this level holds, the technical structure is well-positioned to resolve into a durable double-bottom base. One could enter here and the stock could reach $1500 by mid-2027, a 74% gain from current prices. Remain bullish above $800.

Sandisk was trading around $860 Friday.

Turning to the weekly chart of SNDK, momentum indicators highlight an extended bearish RSI divergence that developed between July 2025 and June 2026, characterized by lower RSI peaks against nominal price highs. This decoupling underscores the primacy of price action over early oscillator signals, as shares surged from $230 to well above $2,300 despite persistent momentum divergence.

Ultimately, weekly candlestick formations provided the definitive exhaustion signal, with a spinning top during the week ending June 26 followed by a bearish hanging man during the week ending July 10 marking the peak.

That distribution initiated a severe seven-week losing streak, the longest consecutive weekly decline by a wide margin since the stock separated from Western Digital in February 2025. Underscoring selling pressure, all seven weekly candles closed directly at the bottom of their respective trading ranges, culminating in last week's 27% plunge, which ranked as the stock's third-largest weekly drawdown since listing.

Heading into Friday's session, however, selling pressure appears to have possibly reached tactical exhaustion. Shares are attempting to stabilize, tracing out a constructive bullish harami cross pattern (doji candle) on the weekly time frame that establishes a good risk/reward scenario. This must be kept on a tight leash and any move below $800 must be promptly stopped out.

Doug Busch is the senior technical analyst at Barron's Investor Circle. His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

November 13, 2026 14:33 ET (19:33 GMT)