A friend of mine shorted SanDisk
$SNDK around August 16. When it rose to around 1800➕ on the 18th, he hurriedly tried to buy some U from me to add to his position and nearly got liquidated. Luckily, he held on. When $SNDK fell to 1400➕ the day before yesterday, he should have taken a substantial profit. Seeing him short it, I also opened a short position and made a small profit😃
However, this narrow escape also exposed the enormous risks of shorting highly volatile assets.
A few days ago, $SNDK fell with the broader trend to around 1400, briefly touching approximately $1,416. To a large extent, this was a concentrated liquidation of the previous frenzied short squeeze, with a large amount of long-side profit-taking fueling this rapid pullback on the order of $100.
However, the market displayed considerable buying support in the $1,400–$1,430 range before quickly rebounding above $1,500. It is currently fluctuating around $1,523, indicating that the bulls and bears have once again entered into intense competition at this level.
**Short term: range-bound trading ($1,420–$1,600):** After the sharp washout marked by a rapid reversal from the $1,800 high and a subsequent rebound from $1,400, short-term indicators need time to recover. Over the next few days, a one-way major move is unlikely to begin immediately. Instead, the price will probably trade within a wide range of $1,450–$1,580, digesting the previously trapped positions and profit-taking.
**Upside resistance and downside support:** The $1,580–$1,600 area has shifted from early support to a strong resistance zone, and it will be difficult to break through in one attempt without a new highly profitable catalyst. The $1,420 level below is a key structural defense level; if it is lost again, a downward gap-fill move toward $1,300–$1,350 cannot be ruled out.
**Risk warning for the future:** Stocks such as $SNDK —high-beta technology and storage plays with highly concentrated capital—are extremely volatile. Your friend’s ability to withstand the squeeze at 1800 and subsequently recover was a case of “poor execution, but luck saved him.”
At the current level above $1,500, the direction of the bulls and bears is unclear. If a second rebound emerges after stabilization over the next few days, blindly shorting against the trend with high leverage could easily lead to another painful lesson from the market. It is recommended that he take profits and stay on the sidelines for now, waiting for a clear range-breakout signal on the daily chart before choosing an opportunity to act.
#Gate股票观点挑战 $SNDK