Recently, SK Hynix in the Korean market has reminded me of gold back in March this year.
The two price movements look somewhat similar: after a major correction, prices have fallen to relatively low levels, but a meaningful rebound has yet to materialize.
I still remember gold hovering around $4,500 at the time, then suddenly, one day, a long lower wick plunged straight down to just above $4,100. Only after that did it gradually stabilize.
I think something similar could happen with Hynix next week: a sudden wave of panic selling could send it plunging intraday into the 900,000–1,100,000 won range.
If that kind of extreme move does happen, quite a few Korean retail investors who piled in near the highs with 2–3x leverage may be forced to close their positions, triggering a cascade of selling.
On the other hand, if leveraged positions are being flushed out en masse, rather than fundamentals deteriorating further, those bloodied shares could actually present a very good short-term dip-buying opportunity.
As the old Wall Street saying goes: “Buy when there's blood in the streets.”
Of course, this is just one possible scenario, not a prediction that it will definitely happen. Next week, I’ll be watching closely to see whether there’s an extreme intraday plunge followed by a quick recovery.
#Hynix #SKHynix $SKHY
The two price movements look somewhat similar: after a major correction, prices have fallen to relatively low levels, but a meaningful rebound has yet to materialize.
I still remember gold hovering around $4,500 at the time, then suddenly, one day, a long lower wick plunged straight down to just above $4,100. Only after that did it gradually stabilize.
I think something similar could happen with Hynix next week: a sudden wave of panic selling could send it plunging intraday into the 900,000–1,100,000 won range.
If that kind of extreme move does happen, quite a few Korean retail investors who piled in near the highs with 2–3x leverage may be forced to close their positions, triggering a cascade of selling.
On the other hand, if leveraged positions are being flushed out en masse, rather than fundamentals deteriorating further, those bloodied shares could actually present a very good short-term dip-buying opportunity.
As the old Wall Street saying goes: “Buy when there's blood in the streets.”
Of course, this is just one possible scenario, not a prediction that it will definitely happen. Next week, I’ll be watching closely to see whether there’s an extreme intraday plunge followed by a quick recovery.
#Hynix #SKHynix $SKHY