SanDisk (SNDK), repeating the 'big reversal' pattern of 2025... Will another monster rally end the crash?

▲ SanDisk (SNDK)/AI generated image

SanDisk (SNDK) showed signs of a rebound similar to April 2025 ahead of its earnings announcement. At that time, its stock price surged over 570% in the following year.

According to crypto-specialized media BeInCrypto on August 3 (local time), SanDisk's stock price closed at $1,214.83, down 5.09% on the last trading day of July. This is a drop of approximately 48% compared to the June high of $2,354.39.

The daily Relative Strength Index (RSI) fell to around 33 at the end of July, its lowest level since April 2025. At that time, the RSI dropped below 30, leading to a rally of over 570% for SanDisk. However, an RSI below 30 can indicate that selling pressure still dominates the market.

SanDisk will announce its fourth-quarter earnings after the market closes on August 5. The company's revenue guidance is between $7.75 billion and $8.25 billion, an increase of 30% to 39% from the previous quarter. The adjusted earnings per share (EPS) guidance is $30 to $33, while Wall Street's estimate is $33.28.

SanDisk has exceeded EPS forecasts for the past four consecutive quarters. Goldman Sachs raised its price target from $1,200 to $2,200, citing a NAND flash shortage. Conversely, market concerns have grown that an inventory surplus in the second half of 2026 could pressure profitability. The new fiscal year outlook and the August 13 Investor Day presentation are expected to determine the direction of the debate.

If the stock price recovers the Fibonacci 61.8% retracement level of $1,244.58, the next target is $1,456.49, representing an approximate 20% increase. The subsequent resistance level is $1,668. Conversely, if it fails to break through $1,244.58, it could fall an additional approximately 22% to the Fibonacci 78.6% retracement level of $942.89.

[Article Summary]

-SanDisk's Relative Strength Index (RSI) fell to around 33, its lowest level since April 2025.

-Following a similar signal in April 2025, the stock price surged over 570% in one year.

-The earnings on August 5 and whether the stock recovers $1,244.58 are expected to determine between a rebound and further decline.

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