Comments:

Sandisk shares have been on a tear since they commenced trading on February 13, 2025, soaring more than 21x from $35.06 to a peak of $777.60 just over one year later. But that run appears to be nearing its end, at least for now.

Since January 30th, SNDK’s price action has transitioned from its nearly vertical movement investors were becoming complacent with, to sideways. And as time passes, that sideways activity is beginning to resemble a Head and Shoulders Top.

But buyer beware, because a pull back to $500 or so over the next few weeks would make a 35% discount will look like a superb deal. And it definitely can be for a nimble investor. 

Just don’t fall in love with the SNDK, because we believe the shares will likely enjoy one last rally to $685 or so over the next few months, before the Head and Shoulders Top resolves itself to the downside. And then it will be Look Out Below.

Our ultimate downside target for SNDK is $257.