Graphjet Tech Plummets 20%—What’s Driving the Sell-Off?

• GTI slumps 21.14% to $0.0694, hitting a 52-week low of $0.0663
• Sector peers like Surf Air Mobility and BioNexus crater, while KBR outperforms
• 27.78% turnover signals forced selling as retail investors panic
Intraday volatility erupts as Graphjet Tech (GTI) collapses to near-record lows, mirroring a broader industrials sector rout. The 20% plunge—the largest since 2023—sparks questions about liquidity crises and weak fundamentals, with the stock trading below its 30-day average and 200-day moving average. The sector’s bifurcation between infrastructure leaders and smaller firms adds to uncertainty.

Margin Calls and Weak Fundamentals Fuel Freefall
Graphjet’s collapse stems from a toxic mix of forced selling and deteriorating fundamentals. The 27.78% turnover rate—a near 90% float turnover—hints at margin-driven liquidation by retail investors. Weak project wins and a $12.9M market cap near 52-week lows made GTI vulnerable to sector-wide panic. The engineering sector’s broader sell-off, driven by infrastructure delays and legal battles, compounded the pain, with peers like Surf Air and BioNexus cratering alongside GTI.

Engineering Sector Mixed as Margin Pressure Weighs on Smaller Players
While KBR (+0.73%) and infrastructure-linked stocks held up, smaller firms like Graphjet and Concorde Intl (CIGL -17%) bore the brunt of margin-driven selling. The sector’s split reflects investor skepticism toward companies lacking tangible project wins or debt restructuring. GTI’s lack of major project updates left it exposed, contrasting with KBR’s resilience from global infrastructure contracts. The bifurcation underscores a ‘survival of the fittest’ dynamic in a liquidity-strained market.

Technicals Point to Near-Term Weakness—No Options Data Available
• 30-day MA: $0.0883 (current price below)
• RSI: 58.14 (neutral, dipping from overbought)
• Bollinger Bands: $0.0694 below lower band ($0.06943), signaling extreme undervaluation
Bearish momentum dominates. Support at $0.0643–$0.1332 (200-day band) is critical—if breached, the next target drops to $0.0568. Aggressive traders may short into resistance at $0.086 (intraday high), targeting $0.06 or lower. No options data available; focus on price action. Key levels: $0.086 (resistance), $0.0643 (long-term support).

Backtest Graphjet Stock Performance
The 3-Day win rate for GTI following a -21% intraday plunge is 28.90%, the 10-Day win rate is 28.67%, and the 30-Day win rate is 28.21%. While the stock experienced a significant drop, it showed a slight recovery over the short term, with a maximum return of -8.45% observed on day 59.

Stay Defensive Until Resistance Holds—GTI Faces a Rocky Road Ahead
Graphjet’s plummet isn’t over yet. The stock’s 20% drop mirrors sector-wide margin pressure and weak fundamentals, with no immediate catalyst to reverse the trend. While KBR (+0.73%) edges higher, GTI’s lack of project traction and liquidity issues keep it vulnerable. Investors should avoid long positions until a close above $0.0883 (30-day MA) breaks the downtrend. Until then, the path of least resistance remains lower—watch for a breakdown below $0.0643 to trigger deeper losses. Action alert: Stay sidelined until technical resistance holds or sector sentiment shifts.