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SanDisk Just a Few Cents Away From a Breakout – Buy Now

SNDK issued a strong buy signal and is set to clear its 50-day moving average


SanDisk (SNDK) — I last reviewed this manufacturer of flash memory storage products on Jan. 13, when it was trading near $72.50, with a trading target of $78.

On July 16, the company reported strong Q2 results. Solid-state drive (SSD) sales jumped 97% and contributed 29% to total revenue. Zacks, which reiterated its “neutral” rating on shares on Aug. 14, pointed out that Apple (AAPL) remains a major customer, saying this will help the company outperform the competition.

Analysts’ consensus estimate is for earnings of $5.92 per share in 2014 and $6.68 in 2015, with a mean price target of $113.39.

SDNK has tracked its 50-day moving average for over a year. But the market correction in July dropped it through this average on a gap from $105.74 to $100 on July 17. Since then, it has consolidated in a shallow saucer with the breakout top of the pattern at the 50-day moving average, now at $98.36. MACD has issued a strong buy signal.

Buy SNDK at the market with a trading target of $105. Enter a stop-loss order at $94.50.

SNDK Chart
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Chart Key

Article printed from InvestorPlace Media, http://investorplace.com/2014/08/trade-day-sandisk-sndk-2/.

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