SNDK, WDC and STX Forecasts – AI Infrastructure Play Weak in Early Thursday Trading

SNDK Technical Analysis

Sandisk looks like it is going to drop a bit in the open Thursday, as premarket trading has been a bit ugly.

The $700 level should at least in theory be a bit of support though, as it was the top of what originally looked like a triangle, but then ended up being a rectangle a while back. With this, I think there will be market memory that people will be paying close attention to in this area, so I will be looking to find some type of momentum picking up to take advantage of.

Western Digital Technical Analysis

Western Digital looks like a market that is testing previous resistance as well, again, so we have a situation where traders are going to be looking for value to take advantage of on the breakout, pullback, and retest type of setup. I have no interest whatsoever in shorting this market.

I do think eventually it will go higher from here, but we may need to have a day or two of consolidation first before we get too aggressive with a position at this point.

Seagate Technical Analysis

Seagate looks like it is in the middle of trying to pick up a little bit of value below where we closed the previous session. I think Seagate is probably the sloppiest looking chart out of these 3 stocks, but we have the 50-day EMA at the $373.73 level.

I think you have a situation where value hunters will more likely than not come back into the picture, but I would step back and let the market do its thing, perhaps bounce and form a bit of a V pattern, before I get involved.

AI infrastructure play seems to be softening a bit in the early part of the Thursday session, as risk aversion returns to the markets. These stocks are longer-term bullish but are giving a bit back in the early hours of Thursday.