The memory chip market has become one of the key bottlenecks in AI infrastructure. Growing model sizes and the proliferation of AI agents could further boost demand, while meaningful new supply is not expected to hit the market until late 2027. As a result, the tight market conditions may persist in the coming quarters. Although the sector remains cyclical, we believe the current cycle could be longer and stronger than previous ones, which, combined with low valuations, could present an attractive investment opportunity. In the second part of our series analyzing the fundamentals of the semiconductor sector, we examine the memory chip market.
The dollar continued its trend of strengthening against the euro and the pound. It hit a new swing low against the euro and may be approaching strong support against the pound. The forint has shown a slight weakening in recent days, a trend that may continue this week. The rise in USD/JPY stalled amid the downtrend. The EUR/CHF exchange rate remained in an uptrend after testing the breakout level.
Gold and silver continued their correction, breaking through key support levels, which could push back the likelihood of a turnaround by several weeks. Oil’s correction is slowly approaching its first significant support level, so the market’s reaction to this zone will be crucial. The rapid rise in natural gas prices has already stalled, but the price remains above the uptrend line. Copper is likely to trade within a wider range, so oversold and overbought zones could present trading opportunities. Wheat and corn prices continued to move within a correction phase, so no new buy signals have emerged yet.
The correction continued this week, with the 4,218 level also breached, so the lows formed a few weeks ago around 4,000 could come into focus. As long as the price remains below the red trendline, it’s best to wait for a reversal.
Resistance levels: 4,688; 4,843; 4,923; 5,000.
Support levels: 4,062; 3,906; 3,750.
It remains in a correction phase because the price broke below the key support level of 62.5. As long as it stays below the downtrend line, it is not advisable to bet on a rise. The previous low around 56.25 could serve as a support level.
Resistance levels: 75; 81.25; 87.5; 93.75; 100; 106.25.
Support levels: 62.5; 56.25; 53.13; 50.
If the correction manages to stay above 87.5, that could be a fundamentally positive sign for a future long entry. If the correction falls further, the timing of the turnaround could be pushed back by several weeks. As long as the red downtrend line remains intact, going long does not seem like a good idea.
Resistance levels: 106,25; 112,5; 118.75; 125.
Support levels: 87,5; 81.25; 75.
The sharp rise seen a few days ago quickly gave way to a correction. However, the uptrend is still intact, so the potential for further gains remains as long as the curve stays above the green trendline.
Resistance levels: 3.125; 3.906; 4.688; 6.25; 7.04; 7.81.
Support levels: 2.714; 2.344; 1.953.
In recent weeks, copper price has moved into a wider range. However, there may be strong resistance above 7.04, while stronger support could be found between the 5.85 and 6.04 levels, which may already be a buying zone. Trades can be initiated at oversold and overbought levels.
Resistance levels: 7.03; 7.81
Support levels: 6.25; 6.04; 5.85; 5.66; 5.46; 5.27.
The correction is slowly approaching the support level, where a pivotal moment may arise: either the trend will continue, or the green trendline will be broken. The final support level, which should trigger a reversal, is at 656. There is also room for an upward move, as resistance is only found around 750.
Resistance levels: 781; 813.
Support levels: 656; 625; 562; 531; 516; 500.
Yesterday's drop already indicates strong selling, so the correction could turn into a trend-following decline. It doesn't look good; it's worth waiting for a buy signal. The 468 level would be an ideal retest point.
Resistance levels: 531.2; 563.
Support levels: 468; 437; 406.
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