Aimei Health (AFJK) Plummets 44.8% Intraday: What's Behind the Sudden Collapse?

Summary
• Aimei Health (AFJK) tumbles 44.79% to $48.86, erasing Tuesday's 1,006% surge
• SEC filing reveals $34.3M extension payment for SPAC merger deadline
• Promissory note issued by sponsor and target company sparks volatility
• Technicals show RSI at 94.92 (overbought), MACD histogram surging at 4.85
Aimei Health's stock has swung from euphoria to panic in 24 hours, with a 44.8% intraday collapse following Tuesday's record-breaking 1,006% rally. The dramatic reversal coincides with an SEC filing extending the SPAC's merger deadline and a promissory note issued by key stakeholders. Traders are scrambling to decipher whether this volatility signals a short-term squeeze play or a fundamental shift in merger expectations.

SEC Filing and Promissory Note Trigger Volatility
The collapse stems from Aimei Health's Form 8-K filing disclosing a $34,330.96 extension payment to push the United Hydrogen Group merger deadline to January 6, 2026. This payment, funded by a $34.3M unsecured promissory note from the SPAC sponsor and target company, triggered immediate skepticism. The note's zero-interest terms and conversion rights into private units at $10 per unit created uncertainty about shareholder value preservation. Retail traders, who fueled Tuesday's 1,006% surge, began unwinding positions as the market digested the lack of concrete merger progress, leading to a classic short-term squeeze reversal.

Navigating AFJK's Technicals: ETFs and Momentum Plays
• RSI: 94.92 (extreme overbought)
• MACD: 5.42 (bullish), Signal Line: 0.57, Histogram: 4.85 (expanding)
• Bollinger Bands: Upper $49.27 (near current price), Middle $14.15, Lower -$20.98
• 200-Day MA: $11.53 (far below current price)
• Support/Resistance: 30D $11.22–$12.83, 200D $9.61–$11.22

AFJK's technicals scream of overextended momentum. The RSI at 94.92 indicates extreme overbought conditions, while the MACD histogram's 4.85 expansion suggests waning bullish momentum. Traders should focus on key levels: the 52-week high of $98.15 (now 100% above current price) and the 200-day MA at $11.53. A breakdown below $42.22 (intraday low) could trigger a 50%+ correction. Given the absence of options liquidity, a cash-secured short position near $46.62 with a stop at $35 could capture the pullback. Aggressive bulls might consider a tight stop-limit order to ride the momentum, but caution is warranted due to the stock's lack of fundamentals.

Backtest Aimei Health Stock Performance
The backtest of AFJK's performance after a -45% intraday plunge from 2022 to now reveals a challenging period for the fund. The 3-Day win rate is 55.17%, the 10-Day win rate is 41.38%, and the 30-Day win rate is 41.38%, indicating that while there were some short-term gains, they were not consistently achieved over longer periods. The fund experienced a maximum return of 0.92% during the backtest period, with a maximum return day on January 1, suggesting that there were brief opportunities for positive performance amidst the overall decline.

Act Now: AFJK's Volatility Demands Precision
Aimei Health's 44.8% intraday collapse underscores the risks of speculative SPAC trading. The stock's technicals suggest a high-risk, high-reward setup, with the 52-week high at $46.62 acting as a pivotal level. A breakdown below $35 could trigger a sharp correction, while a sustained close above $46.62 might validate the rally. Investors should watch for confirmation signals, such as a surge in institutional buying or a merger announcement. Meanwhile, sector leader NextEra Energy (NEE) rose 0.68%, underscoring the decoupling of AFJK's move from broader energy trends. For now, traders must balance the allure of momentum with the risks of a speculative trade. Watch for $42.22 breakdown or regulatory reaction.