Just noticed something pretty interesting about stock patterns that keeps repeating on Wall Street. There's this concept called the high-tight flag that William O'Neil popularized, and it's wild how it keeps showing up in the most explosive moves.



Back in 2003, Taser (now Axon Enterprise) did something absolutely insane. The stock went from $0.40 to $33.45 between late 2002 and December 2004. That's an 8,262% move. At the time, companies that had their IPO in 2003 were getting a lot of attention, and Taser was riding this perfect storm of product innovation, military contracts post-9/11, and basically zero competition in non-lethal weapons tech. They perfected the TASER X26 that year, and suddenly every police department in America wanted it.

What's fascinating is that the stock didn't just moon in a straight line. It built what O'Neil called a high-tight flag - a 100%+ move in 4-8 weeks, then a shallow pullback (max 25%), then another breakout. Taser actually did this twice consecutively. Most people would've sold after that first massive run, but the real money was in holding through the consolidation and catching the second breakout.

Here's where it gets relevant to 2026. Sandisk just pulled off nearly the exact same pattern. In January, SNDK broke out of a classic high-tight flag and gained 154% in four weeks. Since then it's been consolidating in a shallow 25% range - textbook setup for another potential flag.

The fundamentals back it up too. Sandisk makes NAND flash memory for data centers and AI infrastructure. The company's supposed to grow earnings triple-digits through 2027. With AI demand absolutely crushing supply for NAND tech right now, margins are staying juicy.

The lesson from Taser isn't about finding cheap stocks. It's about recognizing when strength is building on strength. Sometimes the counterintuitive move - buying what's already up big instead of hunting for bargains - is where the real money gets made. Sandisk might be showing us that playbook again.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin