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Actionable news in SNDK: SanDisk Corporation,

SanDisk (SNDK) Stock Soars, Charts Show Upside Capped Around Post-Pop Levels

NEW YORK (TheStreet) -- SanDisk (SNDK - Get Report) has declined to around $50 in recent weeks from near $110 in mid-2014. This decline looks pretty nasty on the chart, but like some clouds, there can be a silver lining.

The stock surged as much as 13% in early trading after sources told Bloomberg that the chipmaker hired a bank to explore a potential sale of the business and has received interest from two of its rivals.

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In this longer-term view of SNDK, above, we can see how the stock met resistance around $50 in 2011 and early 2012.

Traders and investors tend to remember key prices and round numbers. And often levels that were resistance can reverse roles, acting as support. So far, this is what is happening with SanDisk.

The declines in SNDK were steeper in the first part of 2015 than more recently. This is shown, graphically, in the bottom panel, with the improving momentum study.

In this one-year daily chart of SNDK, above, we can see a...