Stock Market Mentor

Here’s my take on the memory/data storage space.  You’ll be surprised. – August 14, 2026

Dan Fitzpatrick
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Key Takeaways

  • Massive Retracement in SanDisk: SanDisk suffered a severe pullback, dropping more than 50% from $2,300 to $1,000 before attempting to build a support base.

  • 50-Day Moving Average Ceiling: SanDisk’s recent 5% daily gain pushed price directly into its 50-day moving average, creating immediate overhead resistance.

  • Seagate Presents the Relative Strength Edge: Among the memory storage group (SanDisk, Micron, Western Digital, DRAM, SK Hynix), Seagate displays the healthiest base pattern and upside potential.

  • Avoid Stock Fixation: Trading performance relies on selecting verified chart patterns rather than becoming emotionally attached to specific corporate tickers.

Navigating the Memory Sector: Why Seagate Beats SanDisk at Key Resistance

When a market leader undergoes a violent correction, retail traders often rush to buy the initial rebound out of nostalgia for prior highs. However, professional technicians understand that major pullbacks require extended consolidation phases to absorb overhead supply before a sustainable trend can resume.

As technician Dan Fitzpatrick notes, evaluating the memory and storage group requires focusing on objective technical geometry rather than brand-name fixations.

SanDisk ($SNDK): Testing the 50-Day SMA Overhead

Following an historic advance, SanDisk experienced a severe sell-off, dropping over 50% from $2,300 down to $1,000. While the stock recently produced a heavy-volume 5% daily surge, that rally has pushed price directly into its 50-day simple moving average:

Buying directly beneath a declining 50-day SMA carries significant risk of encountering a “fake-out” reversal. Until price breaks decisively above this moving average and holds, the upside reward remains capped by nearby resistance.

Sector Comparison: Identifying the Relative Strength Winner

A broader inspection of the semiconductor and storage space highlights varying technical health across peers:

  • Seagate ($STX): The Best-in-Class Setup. $STX has successfully constructed a horizontal base and is pushing upward toward new highs, offering a far cleaner risk-to-reward entry than its peers.

  • Micron ($MU) & Western Digital ($WDC): Struggling beneath or right at their 50-day moving averages, showing limited momentum.

  • SK Hynix: Experiencing a severe 35% liquidation following its US ADR listing, exemplifying an overextended bubble unwinding.

Executing Strategy with Discipline

Instead of forcing trades into SanDisk as it tests heavy resistance, active traders should align capital with relative strength leaders like Seagate ($STX). Demand technical confirmation, respect key moving average ceilings, and let probability guide your allocation.