After eight straight trading days of declines in chip stocks, the memory sector finally broke through today. $SNDK surged directly from around 1,200 to near 1,400, gaining more than 6% on the day. A large bullish candle on heavy volume broke the sector’s prolonged pattern of slow declines. Trading volume also picked up, suggesting this wasn’t a low-volume bull trap—real money was buying at lower levels.
But the problems in the price structure remain. Even after this bullish candle, SNDK is still trading below all its short- and medium-term moving averages. Around 1,442 is the nearest clear resistance level, as well as a key trading range that was broken earlier and has yet to be reclaimed. Whether this rebound can progress from an oversold recovery into a trend reversal will face its first major test at this level.
The broader backdrop is that the U.S. tech sector as a whole is under pressure. The Nasdaq fell about 5% this week, while the semiconductor index plunged more than 11%. The memory sector’s rebound is taking place in an environment where macroeconomic headwinds have yet to ease. If the semiconductor index continues to weaken, today’s bullish candle on heavy volume may prove to be just a brief pause in the downtrend.
For now, the key things to watch are whether 1,442 can be decisively broken and held over the next few trading days, and whether support around 1,304 can hold if prices pull back. The battle between these two price levels will determine whether this bullish candle is the start of a reversal or just a pretty dead-cat bounce.
But the problems in the price structure remain. Even after this bullish candle, SNDK is still trading below all its short- and medium-term moving averages. Around 1,442 is the nearest clear resistance level, as well as a key trading range that was broken earlier and has yet to be reclaimed. Whether this rebound can progress from an oversold recovery into a trend reversal will face its first major test at this level.
The broader backdrop is that the U.S. tech sector as a whole is under pressure. The Nasdaq fell about 5% this week, while the semiconductor index plunged more than 11%. The memory sector’s rebound is taking place in an environment where macroeconomic headwinds have yet to ease. If the semiconductor index continues to weaken, today’s bullish candle on heavy volume may prove to be just a brief pause in the downtrend.
For now, the key things to watch are whether 1,442 can be decisively broken and held over the next few trading days, and whether support around 1,304 can hold if prices pull back. The battle between these two price levels will determine whether this bullish candle is the start of a reversal or just a pretty dead-cat bounce.