Erayak Power Plunges 51.48%—What Storm Broke the Renewable Sector's Most Volatile Stock?

Summary
• Erayak Power (RAYA) crashed from $0.177 intraday high to $0.0553 intra-day low
• -51.48% price drop dwarfs sector leader NextEra Energy's -0.268%
• 1392% surge in turnover volume exposes extreme market anxiety
• 52-week low now equals current price amid bearish technical signals
Erayak Power's stock has imploded with a -51.48% intraday drop, shattering its 52-week low and creating one of the most dramatic price collapses in the renewable sector. With turnover surging 1392% and RSI at 17.8, the stock is in freefall mode. This article deciphers the technical triggers behind the collapse and what options traders should watch.

Bear Market Panic Triggers Flash Crash
Erayak Power's -51.48% price drop appears to be driven by a classic short-term bear trap. The stock had been trading in a tight range between $1.2386 and $1.298 (200D support/resistance) but suddenly collapsed as buyers vanished. With RSI at 17.8 and MACD -0.568 (well below signal line -0.3178), technical indicators scream oversold panic. The 0.0621 price is now trading at 85% below its 30D MA (1.8507) and 93% below 200D MA (1.4134), indicating extreme bearish momentum.

Options Strategy for Volatility Hunters
• 200-day average: 1.4134 (far below current price)
• 30-day average: 1.8507 (also far below)
• RSI: 17.8 (extreme oversold)
• MACD: -0.568 (bearish divergence)
• Histogram: -0.2504 (deepening bearish momentum)
• Bollinger Bands: Current price at -0.9280 (lower band)
• Dynamic PE: -3.5 (extreme discount)
• Turnover Rate: 1392% (panic selling)

With technicals showing extreme bearish exhaustion, traders should focus on key support levels. The 200D MA at $1.4134 is a critical psychological floor. Short-term options traders might consider buying puts if the stock breaks below $0.0621, but with no options chain available, the focus remains on technical analysis. The 52-week low at $0.0553 could trigger a brief bounce if liquidity returns, but the -3.5 PE ratio suggests continued weakness. NextEra Energy (NEE) as sector leader at -0.268% shows relative strength, but RAYA's collapse appears idiosyncratic.

Backtest Erayak Power Stock Performance
The performance of RAYA after an intraday plunge of -51% was dismal, with the strategy returning a staggering -93.33% and underperforming the benchmark by -153.31%. The Sharpe ratio was -0.43, indicating significant risk aversion, while the maximum drawdown was 0%, suggesting that the strategy did not recover from the plunge.

Immediate Action Needed as RAYA Tests 52-Week Low
Erayak Power's -51.48% drop has created a technical death cross with all major moving averages. With RSI at 17.8 and MACD at -0.568, the stock is in extreme bear territory. The 52-week low at $0.0553 now acts as both support and potential liquidation point. Traders should watch for a breakdown below this level or a surprise bounce above 200D MA at $1.4134. NextEra Energy's -0.268% decline shows the sector isn't collapsing, but RAYA's technicals demand immediate attention. The key signal to watch: if RAYA closes below $0.0621, this could trigger a wave of margin calls and further panic selling.