Is Sandisk Reset and Ready?

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Is Sandisk Reset and Ready?

When earning go by and you didn’t have a position going in, it often pays to play the reaction.  Some, like Derald (@1nvestor), do it almost immediately with style and grace; if you haven’t had the chance to watch it in action, follow him and see.  Then there are those of us who missed the earnings play, missed the immediate reaction.  What’s left for us?  Maybe more than you think.

With $SNDK I did watch the after-hours reaction on earnings and of course Derald was on it quick, but I also saw this tweet from Joe (@OptionHawk):

4-23-2013 SNDK Optionhawk Tweet

Now, I understand the basics of business and fundamental analysis; but I loathe doing it, so when I find someone I know does a rock solid job…I listen.  Joe covers more ground than anyone I know and gets it…again, I listen.  Here is the 30min chart with the reaction and the following day circled

4-23-2013 SNDK 30minI have been watching the chart for a few days and started getting enticed yesterday and today when it hit one of my RSI oversold in a bull range scans.  This chart looks to be set up well for a potential move back higher.  The daily chart got confirmation today

4-23-2013 SNDKwhich was nice to see; next it needs to move and hold over the blue horizontal line (you will see why below).  More aggressive traders could have bought today, but the RSI signals require the turn before action.  Getting the RSI testing the bull range with CFG below zero   Moving to the weekly chart we see why the blue line is so important.

4-23-2013 SNDK Wkly

That was a big breakout level before this earnings drop, and this chart still looks pretty bullish even after said drop.  Getting back over that level likely sends us to a test of the highs and possibly more.  Now, I know it is early in the week, but If we close the week above that line, it would look to me like a nice Breakout back test which is firing a Positive Reversal in the RSI and very possibly the CFG as well.  That seems to be a lot lining up on this chart!

I have been working on the best way to capitalize on this have a trade plan worked up for it.  What will you do with this information?

Good Luck, it is there for the making!

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(All market data above are derived from, Esignal, and Reutersdatalink)
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About Author


is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.