The chip sector saw capital inflows during the session. Can this recovery rally continue?

In the morning session, the global chip sector was generally under pressure, with U.S. semiconductor stocks weakening across the board. Earlier, the sharp drop in South Korea's heavyweight chip stocks had also driven the spread of market panic. In the afternoon session, institutional funds entered the market to absorb selling pressure, leading to a wave of recovery and rebound in the sector. Among them, SK Hynix's ordinary shares rebounded over 10% from negative territory, the 2x leveraged SK Hynix product rebounded over 20% from its lowest point, and SK Hynix ADRs also saw corresponding recovery.

In my view, this is merely a short-term recovery after the release of panic selling pressure. This wave of rebound is unlikely to sustain and develop into a trend reversal; it's more of a temporary recovery within a volatile market. Although it's a rising candlestick with high volume and strong support below, it's still far from the 20-day moving average. As for whether it can continue, the key is to watch the candlestick patterns over the next two days. Divergence within the sector remains prominent, with hardware chip volatility significantly higher than that of leading consumer tech stocks, and cross-border capital flows are moving at a fast pace.

It is recommended that everyone focus on observing whether the subsequent rebound trading volume can continue to expand. Don't assume the adjustment is over based solely on one wave of buying support during the session.

I will continue to track capital flows and sentiment changes in the overseas chip sector. If interested, you can follow. In terms of operations, avoid blindly chasing highs. It would be more prudent to wait for a signal of stabilization after volatility before calmly making strategic moves.