$SNDK · Brian Shannon · 2026-11-06

So when talking about semiconductors, it is impossible not to mention some of its components. Let's start with SanDisk , and I want to start with SanDisk because when you look at the weekly chart or even the daily chart, you'll see that this anchor started on February 25 , 2025, the day it separated from Western Digital, and it's been above the volume weighted average price every day since that journey began, except for yesterday.

It closed below that for the first time yesterday. Today it has almost stopped at that. This is the average price that the stock has maintained since becoming a public company.

Now we can notice some things. We can say, the height of this rise, let's say 2,400 is a round number and below that, let's say 1,000. That means 1,400 points. This is from A to B.

This will be from B to C. This is 1,900. So if we subtract 1,400 points from this , it could indicate a drop towards 500. It doesn't seem reasonable to me , but it's good to know, right?

So if we look at it, it has come down to that anchor starting from the time of the first trading as a new public company after the spin-off. And today, how was its behavior? Let's look at the matter in the short term.

Are we seeing any evidence that buyers are taking control in this area ? The market gapped up for a short time this morning and we had to chase the gap or wait for VWAP. If you bought above it, it went up quickly, but then it failed.

So I think your worst possible loss would be below today's low.

What we saw next was that the average daily price was continuously decreasing. The combined average price of yesterday and today has also moved downwards. So, since this gap down, participants have paid an average of about 860.

Now we are at 840. That means they are at a loss of about 20 points. We don't want to see the process of forming a market bottom like this.

What do we want to see here? Let's draw it, like I always do. Thanks for the review, people. This is not a review. It is looking into the future to say what is most likely to happen next week.

Let's sort out the situations. Let's map out some scenarios of what could happen. Suppose we saw a bit of a bounce or uptrend on Monday and then it sold off again. We saw a big drop and then we saw something like this on Tuesday.

And then what happens? As you know, a five-day moving average will calculate the average of Monday, Tuesday, and Wednesday. So maybe around Wednesday afternoon we'll start seeing that.

The five-day moving average may still be falling, but I think you can get into the investment then because the five-day moving average will be stable or upward by Thursday. And this could be a significant bottom for the stock.

As I said, I would prefer to see an undercut or a slightly larger decline, because those who bought in the last two days shouldn't have much confidence since the average price is $20 higher.

So maybe by getting them out we can get a chance to turn things around quickly.

And if it turns around quickly, remember that I don't see this as an investment opportunity. I view this as a swing trader, just like all stocks. As a swing trader, I do n't have to keep seeing record returns here and there and being disappointed over and over again.

As a swing trader, I'm happy to make a little profit here, a little there, and a little somewhere else , and if I get a good trade overall, that's fine.

What I would focus on is being aware of the direction of the five-day moving average and keeping an eye on the starting point of this movement. This could be a place where supply or selling pressure could arise.

Let's say you buy it for $885-890 , maybe it will reach $1,000 quickly. This doesn't mean you have to sell there , but it's a key level where you may see some selling pressure.

You can see it, maybe it can continue the same way.