Chijet Motor (CJET.O) Plummets 62.5%: Technicals, Order Flow, and Theme Stock Clues

Chijet Motor (CJET.O) suffered a dramatic one-day drop of 62.49%, far outpacing even the most volatile tech stocks. With a trading volume of 26.8 million shares and a current market cap of just $6.86 million, CJET appears to have been hit by a combination of panic selling and possibly short-term algorithmic pressure.

Technical Signal Analysis

Among the key technical signals, RSI oversold was the only triggered indicator. This suggests that the stock has been overextended on the downside, and typically, such a signal may prompt a short-term bounce. However, the absence of any other reversal patterns like head-and-shoulders or double-bottom indicates a lack of structural support at current levels.

Notably, no KDJ golden or death cross was triggered, so there’s no strong bearish or bullish momentum signal from stochastic oscillator. The fact that none of the major candlestick formations were confirmed also suggests a lack of a clear directional bias from price action alone.

Order-Flow Breakdown

Unfortunately, no block trading or order-book data is available. However, the extreme drop in price and the high volume imply a sharp outflow—likely triggered by stop-losses or algorithmic liquidation. The absence of bid support at any level points to a lack of institutional or retail buyers stepping in to absorb the selling.

With no major bid clusters reported and no block-trade inflows, the stock appears to have experienced a free fall, with sellers vastly outpacing buyers.

Peer Comparison

Most of the peer stocks in the broader theme space also declined, but not to the same extreme. For instance:

• AAP dropped -2.42%
• AXL dropped -1.93%
• ADNT dropped -0.67%

Only a few stocks showed modest gains, like ATXG (+4.14%) and BH.A (+0.63%). The fact that CJET dropped far more sharply than its peers suggests that the move is not part of a broad sector rotation, but rather a stock-specific event. This could imply issues tied to liquidity, news from a non-English source, or sudden regulatory pressure.

Hypothesis Formation

• Hypothesis 1: Short-Squeeze Reversal – The stock may have been shorted aggressively in the days prior, and today’s RSI oversold signal could be the result of short-covering. However, given the volume and price drop, this seems less likely—it appears to be selling, not covering.
• Hypothesis 2: Regulatory or Liquidity Shock – There may be an unreported regulatory event or liquidity squeeze—especially in markets outside the US—triggering a rapid exit by short-term traders. The lack of bid support and the sudden nature of the drop point to this.

What to Watch Next

Traders and investors should closely watch whether CJET stabilizes around key support levels or if further selling pressure emerges. The stock may test the psychological level of $0.05 if the selling pressure continues. A short-term bounce off the RSI oversold level could be a buying opportunity, but only for risk-tolerant traders.