Shares of Sandisk may have confirmed a major Elliott Wave bottom after completing a near-perfect zigzag correction into Fibonacci exhaustion and then exploding higher through key reversal resistance levels. What initially appeared to be a violent corrective collapse now increasingly resembles a textbook Wave C capitulation low followed by the beginning of a powerful impulsive recovery.
The corrective structure began with Wave A falling sharply from 1600 down to 1362, producing a steep 238-point selloff that broke bullish momentum and triggered widespread liquidation across semiconductor and AI-related technology names. The decline reflected broader market volatility as investors aggressively reduced exposure to high-beta growth stocks after an extended rally phase.
After reaching 1362, SNDK staged a rebound rally back to approximately 1513, forming what many Elliott Wave analysts interpreted as a classic Wave B countertrend rally. In Elliott Wave theory, Wave B rallies often restore temporary bullish confidence before the final emotional Wave C decline unfolds.
Using traditional wave symmetry analysis, traders then projected a likely Wave C termination target by measuring equality between Wave A and Wave C.
C = A = 238
Applying that same 238-point decline from the Wave B high near 1513 generated a precise downside projection near 1275.
1513 - 238 = 1275
Many analysts also identified a broader support region around 1282–1292 due to overlapping Fibonacci retracements and structural support. What made the setup especially compelling, however, was that the stock reached an intraday low of exactly 1275 before reversing higher almost immediately.
That precise touch of the Wave A equals Wave C target dramatically strengthened the argument that the zigzag correction had reached exhaustion.
Adding even more significance to the setup was the apparent formation of an ending diagonal during the final stages of the Wave C decline. Ending diagonals are among the most important exhaustion patterns in Elliott Wave analysis because they frequently appear at major turning points where selling momentum begins collapsing even while price makes marginal new lows.
An ending diagonal typically signals that:
bearish momentum is weakening
wave overlap is increasing
emotional capitulation is intensifying
sellers are becoming exhausted
Those conditions often emerge directly before major reversals.
The strongest confirmation signal came today.
After bottoming at 1275, SNDK rallied aggressively and successfully broke above approximately 1430, which represented the top of Wave 1 from the initial rebound off the lows. In Elliott Wave analysis, reclaiming the top of Wave 1 following an ending diagonal often serves as powerful evidence that the correction has fully completed and that a new impulsive structure higher may already be underway.
Now, with the stock trading around 1480, momentum appears to be accelerating rapidly away from the capitulation low.
Technically, several major bullish signals are now aligning simultaneously:
Wave C achieved precise equality with Wave A
The stock bottomed exactly at 1275
A probable ending diagonal formed into the low
Price violently reversed from Fibonacci exhaustion
The top of Wave 1 near 1430 was reclaimed
Momentum continues expanding with price now near 1480
That combination represents one of the cleaner Elliott Wave reversal structures traders can encounter.
From a psychological standpoint, the move reflects a classic transition from panic to disbelief. During the final stages of the decline, sentiment likely became overwhelmingly bearish as traders assumed the stock would continue collapsing lower. Instead, the market completed its corrective structure precisely into Fibonacci support, exhausted sellers through the ending diagonal, and then reversed sharply higher before most participants were emotionally prepared for the move.
The semiconductor sector itself remains strongly tied to long-term artificial intelligence infrastructure growth, cloud computing expansion, and increasing demand for advanced storage and memory systems. Because of that broader backdrop, many Elliott Wave analysts continue viewing sharp corrections in semiconductor leaders as reset phases within larger bullish cycles rather than the beginning of secular bear markets.
If the current interpretation is correct, SNDK may now be transitioning out of a completed Wave 4 correction and into the early stages of a new impulsive advance higher. In Elliott Wave structure, reversals following completed ending diagonals are often extremely aggressive because short sellers rush to cover positions while sidelined buyers rapidly re-enter.
Confirmation will still matter moving forward. Traders will now watch whether SNDK can continue holding above the reclaimed 1430 breakout zone while building higher highs and higher lows. Strong volume expansion, improving relative strength, and continued leadership within the semiconductor sector would all strengthen the bullish case.
For now, however, the evidence increasingly suggests that SNDK may have completed a near-perfect zigzag bottom. The stock hit the exact Wave A equals Wave C projection, formed an ending diagonal into the low, reclaimed major resistance, and rapidly accelerated higher afterward.
With shares already trading near 1480 after bottoming at 1275, the reversal now appears increasingly consistent with the beginning of a much larger recovery phase rather than merely a temporary bounce.