SNDK - Breakout, Fibonacci Retest & Potential ContinuationSandisk CorporationBATS:SNDKAlphaFox-TradersSNDK caught my attention after breaking out of the previous descending channel and forming a higher high. After the breakout, price moved up toward the 61.8% Fibonacci level and has now pulled back toward the 38.2% area. For me, this could be an important retest zone if buyers step in and support the price here. The setup I'm watching is: Entry: Around the current price, preferably after confirmation around the 38.2% Fib area Stop Loss: $1,313, below the previous support and 23.6% Fib area TP1: 61.8% Fibonacci level TP2: Around $2,065, near the 78.6% Fibonacci level Another thing I like about this setup is the 20 SMA. The stock has previously reacted from the 20 SMA as support before the downtrend started. If price continues to hold above the 20 SMA during this pullback, it would give me some additional confidence in the setup. What I'm watching I wouldn't want to enter simply because price has reached the 38.2% level. I'd rather see some confirmation that buyers are actually stepping back in. A bullish reversal candle around this area, preferably with improving volume, would make the setup more interesting for me. On the other hand, if price breaks below the 38.2% area with strong selling pressure and fails to recover it, I'd be more cautious about entering. For me, a break below the $1,313 support area would invalidate this particular bullish setup. Overall, I'm looking at this as a potential bullish continuation setup, but I would like to see confirmation before getting too aggressive. The main thing I'm focusing on is whether the 38.2% Fib area can hold and turn into support rather than resistance. MFI is showing healthy money flow, suggesting buyers are still present and there isn't strong selling pressure yet. RSI is holding above the mid range, indicating momentum is improving but hasn't reached an overbought level. Volume is important for confirmation, a pickup in volume on the bounce would add more confidence to the breakout and continuation setup. Disclaimer: The information provided is for educational and informational purposes only. It does not constitute financial or investment advice. Trading and investing in stocks involves risk, including the possible loss of capital. Any decisions to buy, sell, or hold securities are the sole responsibility of the reader. Past performance is not indicative of future results. Always do your own research and, if necessary, consult with a licensed financial advisor before making investment decisions.