SanDisk Broke Resistance

Published on Thursday, 22 March 2012 09:04 Written by TradersHuddle Wire

New York, March 22nd (TradersHuddle.com) - Shares of SanDisk Corporation (NASDAQ:SNDK) closed the session at $51.29 just above calculated resistance at $51.00. The stock moved to what appears to be a higher range, spurring attention from momentum buyers. 

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.

The stock was trading in a well defined range with support at $48.18 and resistance at $51.00. Given that this range was broken, traders will be closely monitoring SanDisk's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that SanDisk is still near the broken resistance level, traders will be focusing on the $51 level to see if the stock holds the breakout without rolling over.