Chijet Motor (CJET) Plummets 62%: A Free-Fall Amid Oversold Signals and Zero Buyer Support

Summary
• Chijet Motor (CJET) slumps 62.49% to $0.224, erasing 66% of its value since last week’s $0.59 offering price.
• Intraday range spans $0.2011 to $0.28, with turnover surging 169.5% as panic selling dominates.
• RSI hits 25.88 (oversold), while MACD (-0.217) and negative histogram (-0.052) confirm bearish momentum.

Chijet Motor’s catastrophic 62.49% drop has sent shockwaves through the market, with no buyers stepping in to absorb extreme volume. The stock’s collapse follows a $0.59 public offering announcement and a technical breakdown marked by oversold RSI and negative momentum indicators. With no reversal patterns and zero bid support, CJET’s free-fall underscores a liquidity crisis or regulatory trigger.

Regulatory and Liquidity Shocks Trigger Free-Fall Selling
Chijet Motor’s 62.49% plunge stems from a confluence of factors: a $0.59 public offering priced 66% below last week’s levels, regulatory uncertainty, and a lack of buyer support. The offering’s zero-cash warrant structure—allowing holders to exchange warrants for two shares—signals aggressive dilution, eroding shareholder value. Meanwhile, technical indicators confirm a breakdown: RSI at 25.88 (oversold), MACD (-0.217) and histogram (-0.052) in bearish territory, and no candlestick reversal patterns. The absence of block trades or bid clusters suggests algorithmic liquidation or stop-loss cascades, with no institutional buyers to stabilize the stock.

Automotive Sector Steadies as CJET's Free-Fall Stands Out
While the broader automotive sector remains mixed, Chijet Motor’s collapse is an outlier. Tesla (TSLA) leads with a 1.74% intraday gain, and peers like AAPL (-2.42%) and AXL (-1.93%) show modest declines. CJET’s 62.49% drop far exceeds sector volatility, pointing to stock-specific issues—likely tied to its $0.59 offering, regulatory risks, or liquidity crunch. The sector’s stability contrasts CJET’s free-fall, reinforcing the view that this is not a systemic industry event.

Navigating Oversold CJET: ETFs and Options for Risk-Tolerant Traders
• RSI: 25.88 (oversold, potential bounce trigger)
• MACD: -0.217 (bearish), Histogram: -0.052 (negative momentum)
• Bollinger Bands: $1.03 (lower band) vs. $0.224 (current price), indicating extreme bearish deviation
• 200D MA: $1.88 (current price far below, signaling long-term bearishness)

CJET’s technicals paint a dire picture: oversold RSI hints at short-term bounce potential, but no reversal patterns or bid support suggest a structural breakdown. Traders should monitor the $0.05 psychological level, with a 5% downside scenario (to $0.213) testing immediate support. The absence of leveraged ETFs and options liquidity means no direct hedging tools, but risk-tolerant traders might consider short-term puts if volatility spikes. However, the lack of options data and extreme liquidity risks make this a high-risk, high-reward play.

Backtest Chijet Motor Stock Performance

CJET at Crossroads: Watch $0.05 Support and Sector Leadership
Chijet Motor’s free-fall is a liquidity and regulatory crisis in real time, with no immediate signs of stabilization. The stock’s 62.49% drop and oversold RSI suggest a potential bounce, but structural issues—dilutive warrants, negative free cash flow, and zero buyer support—weigh heavily. Investors should watch for a breakdown below $0.05 or regulatory clarity. Meanwhile, Tesla’s 1.74% gain highlights sector resilience, offering a stark contrast to CJET’s turmoil. For now, CJET remains a high-risk trade—monitor the $0.05 level and sector leadership for directional clues.