Are the Bears Taking Control over SanDisk?

Published on Friday, 15 June 2012 04:54 Written by TradersHuddle Wire

New York, June 15th (TradersHuddle.com) - Shares of SanDisk Corporation (NASDAQ:SNDK) ended the trading session lower by $0.77 or -2.14% from its previous close. SanDisk's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

SanDisk Corporation (NASDAQ:SNDK) supplies flash data storage products. The Company designs, manufactures, and markets industry-standard, solid-state data, digital imaging, and audio storage products using its patented, high-density flash memory and controller technology.

SanDisk's current stock range is determined by calculated support defined at $30.99 and by the resistance level at $36.57, which should be used by traders planning their next move.

If traders want to establish a position in SanDisk, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor SanDisk for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: