Why Did Graphjet Plunge 27%? Technical Signals, Volume Surge Trigger Sell-Off

On June 13, 2025, Graphjet experienced a significant drop of 5.81% in pre-market trading, sparking concerns among investors and analysts alike.

Graphjet's recent dramatic plunge of 27% has been attributed to a combination of technical signals, high trading volume, and liquidity issues. The KDJ Death Cross, a momentum indicator, turned bearish, signaling a potential downward trend and triggering algorithmic or human-driven selling. This technical signal, combined with the stock's thin trading volume, likely amplified investor pessimism and led to a self-reinforcing cycle of falling prices and stop-loss orders.

Despite the massive trading volume, there were no reported block trades, suggesting that the drop was not driven by institutional sell-offs. Instead, the crash was likely the result of retail or algorithmic selling, as small investors or automated strategies reacted to the KDJ signal and price drops. The lack of net inflow/outflow data makes it difficult to pinpoint exact clusters, but the sheer volume implies a self-reinforcing cycle where falling prices triggered stop-loss orders, further pressuring the stock.

Graphjet's peers showed no unified trend, suggesting that sector rotation was not the cause of the crash. Most peers stayed stable or rose slightly, except for a few outliers. This divergence indicates that Graphjet's crash was likely isolated, possibly tied to its own technicals or liquidity issues.

In conclusion, Graphjet's dramatic drop serves as a cautionary tale for small-cap investors. Technical signals matter, especially in volatile markets, and volume surges can signal panic rather than fundamentals. Traders should always pair technical analysis with an eye on liquidity and peer performance, especially for micro-caps.