Reversed initial bearish stance on SNDK following breakout; currently holding small positions with plan to increase exposure if upward momentum continues.

I want to talk about one of my favorite stocks from last year, which may well become this year's new favorite as well. I am talking about SanDisk. This is how SanDisk has been performing for a while now.

The stock briefly crossed above its 50-day moving average , then retreated again and looked like a lower peak, suggesting a downward move is coming. But that didn't actually happen.

The stock has been contained at the 20-day moving average . So the situation was getting worse little by little . And now we arrive at Monday, with heavy trading volume , and despite it remaining below the 50-day moving average , doesn't it seem to be preparing for something?

Then Wednesday came and nothing happened , but we kept waiting. We waited and waited, and here we are yesterday, and then finally the explosion happened today with a trading volume higher than average.

One of the stocks we were looking at was SanDisk and also Micron. We were talking about SanDisk and Micron. And I was saying, basically, there are some things that are happening.

I won't burden you with all the details, but it's not really the place you'd like to be .

So, I think it might even be before 10:00, after I gave some kind of bearish forecast for Sandisk and Micron. Honestly, guys, I don't think this is really where you'd like to be .

I raised my hand and said, "Well, to be honest, I should tell you that I just bought shares of SanDisk and Micron." The moral of this story is: if you are a trader, it is never too late to change your mind if you think you are wrong. So, I've changed my mind about this.

But we didn't see that here. In fact, we saw SanDisk's stock rise sharply at the close. Large trading volume at the close and even afterward. I mean, you can see that, I don't need to explain it on the five-minute chart.

You can see how the stock rose at the close and actually closed at its highest level of the day.

SanDisk, however, has hardly declined at all . So, the fact that it has gone up, I mean, it's good that it's trading above the volume-weighted average price . amazing. Long live VWAP.

But what really impresses me is the closure. These stocks closed very well .

Yes, and similarly with SanDisk, one of the things I wanted to point out here is that this stock was also trading sideways. Good breakthrough today. I think it's very easy to predict an additional increase of 15 or 16%, which is not a small amount.

But one of the things I was doing was drawing these squares, and this was big, I think you could say if you go here, this is a big retreat here, isn't it? Then this starts to move sideways, and you have to keep this square here because that was the peak point.

Then I start making these squares smaller and smaller and smaller. This is what I sometimes do just to identify or actually highlight the fact that the stock is in a state of volatility compression, and is in this compression.

Before you can really look at "Bollinger Bands" and say, "Well, you know, they're pretty tight." That's not the case. The offer is approximately 27%. This is the true embodiment of not being distressed.

But, when you really look at the way this stock is confined between the 20- day moving average and the 50-day moving average, I can see it starting to rise as well.

So, I like these two arrows. I didn't rush into buying, not at all. They were small, conservative trades in both, but I like the way they trade, and if they continue to rise on Tuesday, I will put them on the active trading list and we will go all in .