SK Hynix faces resistance as bearish flag keeps downtrend risk alive

SK Hynix is caught between short-term support and significant overhead resistance, with its shares at KRW 1,423,000. The technical setup is identified as an active bear flag or consolidation pattern, raising the risk that the broader decline could resume if the recent rebound loses momentum.

The stock is trading below its 50-day moving average at KRW 1,488,880 and its 200-day moving average at KRW 1,799,785. It is also inside the Ichimoku cloud, which extends from KRW 1,419,250 to KRW 1,517,000. This places the current price in an area regarded as heavy resistance rather than confirming a sustained recovery.

There are nevertheless several short-term positive signals. The MACD has registered a bullish momentum crossover, the SuperTrend has turned green at KRW 1,344,276 and the price remains above its 20-day moving average at KRW 1,349,400. However, volume is decreasing, while a doji recorded at KRW 1,423,000 on November 1 points to indecision near resistance.

The main resistance area is between KRW 1,463,000 and KRW 1,488,000. It includes the 38.2% Fibonacci retracement at KRW 1,463,466 and the 50-day moving average. A move above KRW 1,517,000 would invalidate the bearish setup identified in the analysis, while KRW 1,344,000 marks the stated bearish invalidation level.

The technical assessment places support between KRW 1,344,000 and KRW 1,350,000, where the SuperTrend and 20-day moving average converge. The area between KRW 1,350,000 and KRW 1,463,000 is considered a choppy, no-trade range because the price remains inside the cloud and between key moving averages.

Under the bearish scenario, a rejection near KRW 1,488,000 could open the way toward KRW 1,349,000, followed by KRW 1,250,000 and the previous macro low at KRW 1,172,000. A more conservative bearish trigger would be a five-hour close below the 20-day moving average, around KRW 1,340,000.

The bullish scenario requires either a pullback toward KRW 1,350,000 that holds as support or a five-hour close above the Ichimoku cloud at KRW 1,520,000. The projected upside levels are KRW 1,488,000, KRW 1,553,000 and KRW 1,643,000. The analysis assigns medium confidence to the bearish scenario and low confidence to the bullish one, with future direction dependent on the interaction with the 50-day moving average, SuperTrend support and trading volume.

Sources: Investing.com News.