SK Hynix fell 9.61% on July 29, closing at KRW 1,401,000 (SKHY: approximately $130.17) after reaching an intraday low of KRW 1,246,000 (approximately $115.77). The stock has now declined more than 50% from its late-June high, but the latest low tested a previous breakout area, suggesting that buyers are beginning to defend this zone.
The company’s fundamentals remain strong. Demand for HBM and high-performance memory used in AI servers has not shown a meaningful decline, while revenue and operating profit remain at historically high levels. However, the market had already priced in extremely optimistic growth expectations. Even record earnings can trigger valuation compression when the results fall short of those expectations.
Following the sharp correction, SK Hynix no longer appears expensive. Still, semiconductor cycle leaders often trade at their lowest P/E multiples near peak earnings. A low valuation alone is therefore not enough to confirm a market bottom.
Key Technical Levels
The most important support zone is KRW 1,246,000–1,249,000 ($115.77–$116.05). As long as this area holds, the stock may begin forming a base or stage an oversold rebound. A confirmed daily close below it would expose the next support at KRW 1,100,000–1,150,000 ($102.20–$106.85).
The first resistance zone is located at KRW 1,550,000–1,620,000 ($144.01–$150.52). The short-term bearish structure would begin to weaken only if price recovers this area.
Further resistance stands at KRW 1,780,000–1,860,000 ($165.38–$172.82). A more meaningful medium-term trend reversal would require a recovery above KRW 2,000,000–2,100,000 ($185.82–$195.12).
Trading Setups
Aggressive traders may watch the KRW 1,246,000–1,300,000 ($115.77–$120.79) area for a bullish engulfing candle, double bottom, or higher low before considering a small position. A confirmed break below KRW 1,246,000 ($115.77) would invalidate the bottom-fishing setup.
More conservative traders may prefer to wait for a recovery above KRW 1,620,000 ($150.52). If that level is reclaimed, the next target area would be KRW 1,780,000–1,860,000 ($165.38–$172.82).
Fundamentals remain strong and the valuation has compressed, but the technical trend has not yet reversed. Holding the key support could lead to a base-building phase; losing it would keep the broader downtrend intact.