Graphjet Plunges 19.02%—What’s Fueling This Sudden Freefall in a Key EV Supply Chain?

Summary
• Graphjet (GTI) slumps 19.02% intraday, breaching $0.105 as of 15:56 ET
• Nasdaq grants conditional listing extension, but pre-market plunge hits $0.12
• Samsung-Tesla collaboration and green graphite tech fail to offset investor jitters
• 52-week range of $0.0568–$4.1502 highlights extreme volatility and structural fragility

Graphjet’s stock is in freefall amid a perfect storm of regulatory uncertainty and sector-wide jitters. Despite a conditional Nasdaq listing extension and strategic partnerships with EV and semiconductor giants, the stock has cratered 19% in a single session. This collapse follows months of regulatory battles, capacity expansion delays, and mixed signals from its green graphite production. With the industrial metals sector itself under pressure from softening demand, investors are left scrambling to parse whether this is a buying opportunity or a warning shot.

Nasdaq Uncertainty and Sector Headwinds Ignite Panic
Graphjet’s intraday plunge is a direct consequence of regulatory ambiguity and sector-wide headwinds. The Nasdaq conditional listing extension, while preventing immediate delisting, has left investors anxious about compliance deadlines and potential future restrictions. Compounding this, the industrial metals sector is grappling with declining demand for EV-related materials as global automakers adjust production forecasts. Graphjet’s recent news of a Japanese trading company visit and capacity expansion plans failed to offset these pressures, as traders rotated out of speculative plays in favor of more stable assets. The stock’s 19% drop—its largest intraday move in over a year—reflects a liquidity crunch and a breakdown of confidence in management’s ability to stabilize operations.

Industrial Metals Reeling as EV Demand Falters
The industrial metals sector is under siege, with copper prices retreating 3% ahead of U.S. tariff deadlines and lithium markets bracing for supply disruptions. Graphjet’s collapse mirrors broader sector pain, as companies like Torex Gold and Anglo American pivot toward copper and crop nutrients amid waning demand for rare earths. While Graphjet’s green graphite technology remains a niche play, its 19% drop outpaces even struggling peers like WANG & LEE Group (-35%) and VisionWave Holdings (-30.19%), underscoring its role as a high-beta proxy for EV supply chain sentiment.

Navigating the Volatility: ETFs and Technical Plays
• 200-day MA: $0.753764 (severely oversold)
• RSI: 70.01 (overbought territory)
• Bollinger Bands: $0.064–$0.123 (tight range, bearish bias)
• MACD: 0.00409 (bullish divergence, but signal line at -0.00067 suggests weakness)

Graphjet’s technicals paint a mixed picture. The 70 RSI suggests overbought conditions, yet the stock remains far below its 200-day average, creating a paradox for traders. Short-term momentum favors bearish plays, with key support at $0.0935 and resistance at $0.1332. Given the absence of liquid options, leveraged ETFs like the Industrial Select Sector SPDR (XLI) could offer indirect exposure, though XLI’s 0.35% gain today highlights its divergence from GTI’s carnage. For pure-play bets, cash-secured puts at the $0.09 strike (if available) could capitalize on a potential rebound to $0.12, but liquidity constraints make this a high-risk strategy.

Backtest Graphjet Stock Performance
The 30-day win rate for GTI following a -19% intraday plunge is 66.63%, with a maximum return of 4.84% over 59 days. These results suggest that GTI tends to recover from significant dips, although the maximum return indicates that not all periods experience positive gains.

GTI’s Freefall: A Catalyst for Sector Rotation or a Bottoming Play?
Graphjet’s 19% collapse is a wake-up call for investors in the EV supply chain. While the Nasdaq extension provides a temporary reprieve, the stock’s technicals and sector dynamics suggest further downside risks. Watch for a breakdown below $0.0935 to trigger broader selloffs in industrial metals, while a rebound above $0.12 could signal a short-term bottom. Traders should prioritize liquidity and avoid overexposure in this highly volatile name. For now, the sector leader GTI (-19.16%) remains a barometer of risk appetite—stay alert to its next move.