$SNDK SNDK slides another 12.21%, with four storage stocks falling in tandem
Today, this stock fell below the lower Bollinger Band at 1014, and is now at 1001. I expect it to move lower for a while, with a target of 970.
All four NAND makers were sold off together. Seagate fell 12.38% over the past 24 hours, including pre- and after-hours trading, and closed down 8.13% on the latest trading day—the worst performer of the four. Western Digital fell 10.45%.
The semiconductor ETF fell just 5.77% over the same period, while this storage group dropped more than twice as much. Selling pressure was concentrated in flash memory stocks.
Analysts are also changing their tune. In its third-quarter letter to investors, Buffalo Growth Fund said it exited storage stocks after momentum reversed. Western Digital’s modeled fair value was cut from $650.67 to $613.38.
Concerns about storage prices are still weighing on the sector.
There are just two points to make about the technical picture. The current price has fallen decisively below the Bollinger Bands, with the lower band at 1014 now acting as resistance. Volume over the past three trading days has been 1.7 times the average for the previous 20 days. The high-volume decline suggests sellers haven’t let up.
On November 4, the stock touched 1147 intraday but closed at just 1030, giving back all of its gains for the day. Premarket rallies followed by intraday reversals have appeared repeatedly, making these rebounds very weak.
As long as rallies remain capped below 1200, my view won’t change. If it moves lower, the target is the 970 round-number level.
#SNDK
Today, this stock fell below the lower Bollinger Band at 1014, and is now at 1001. I expect it to move lower for a while, with a target of 970.
All four NAND makers were sold off together. Seagate fell 12.38% over the past 24 hours, including pre- and after-hours trading, and closed down 8.13% on the latest trading day—the worst performer of the four. Western Digital fell 10.45%.
The semiconductor ETF fell just 5.77% over the same period, while this storage group dropped more than twice as much. Selling pressure was concentrated in flash memory stocks.
Analysts are also changing their tune. In its third-quarter letter to investors, Buffalo Growth Fund said it exited storage stocks after momentum reversed. Western Digital’s modeled fair value was cut from $650.67 to $613.38.
Concerns about storage prices are still weighing on the sector.
There are just two points to make about the technical picture. The current price has fallen decisively below the Bollinger Bands, with the lower band at 1014 now acting as resistance. Volume over the past three trading days has been 1.7 times the average for the previous 20 days. The high-volume decline suggests sellers haven’t let up.
On November 4, the stock touched 1147 intraday but closed at just 1030, giving back all of its gains for the day. Premarket rallies followed by intraday reversals have appeared repeatedly, making these rebounds very weak.
As long as rallies remain capped below 1200, my view won’t change. If it moves lower, the target is the 970 round-number level.
#SNDK