SanDisk review for September 21: after rising to 1834, a sell-off followed; the CEO sold shares 📉
Yesterday SanDisk showed the typical move of “rally followed by a drop.” The opening was at 1826; during the day the high reached 1834, but the price failed to hold at that level. Then the price sharply fell; the low reached 1737, and it closed at 1766, down 1.41%. Intraday volatility exceeded 5%, and trading volume was $18.5 billion.
The logic behind the morning rally was clear—on September 21, the company was officially added to the S&P 100 index, and passive funds began buying right at the open. But once demand dried up, the price failed to hold.
The main pressure came from the CEO’s share sales. Chairman and CEO Hägele sold a total of 33,841 shares over 15 trades on September 17 at a volume-weighted average price of $1,574.21, raising about $53.27 million. This was the second sale after the first one on September 14; over two weeks, he disposed of shares worth more than $100 million.
Remember the 1737 level. It’s the intraday low since September 8 and a short-term line between bulls and bears. The resistance zone at 1800–1835 has repeatedly been tested and has continued to reject upward moves.
My view: passive buying due to the index inclusion is a one-off event, while the CEO’s consecutive sales create ongoing pressure. If the level near 1740 doesn’t hold, the next support level is the gap zone at 1712–1700. At the moment, buying on a bounce is not a good idea.
For reference only; this is not an investment recommendation. $SNDK
