Just had a friend on Twitter ask me why storage prices break below support, bounce back, and then drop again. Is there some new bearish news? In my opinion, no. Recently, I haven’t seen any new fundamental bearish factors for storage. The logic around HBM, DDR, and capital expenditure hasn’t changed significantly. Sometimes, it’s more about market sentiment and technical factors. Many pieces of news get amplified by the market, triggering short-term profit-taking. From a technical perspective, breaking below the trendline, bouncing back to retest, and then continuing to drop is a classic pattern. In most cases, the rebound after breaking below still leans bearish. Of course, there are rare instances where prices regain the trendline, but that usually requires very strong buying pressure to reverse market sentiment. Statistically, the probability of this happening is only around 20%. The reason isn’t complicated. After breaking below, a lot of trapped positions are left above. When the price rebounds to near their cost, many people choose to sell, turning the previous support into new resistance. If buying pressure doesn’t absorb this selling pressure, the price tends to fall again. The two textbook examples I’ve posted below are classic cases: break below → retest → fail to break higher → drop again. So, my current view on storage is that it’s more of a technical adjustment rather than a fundamental issue. It’s just digesting some pessimism and consolidating for now.