Graphjet Soars 34.38% After 26.7% Plunge on KDJ Signal

On June 12, 2025, Graphjet surged by 34.38% in pre-market trading, marking a significant turnaround from its recent volatility.

Graphjet's recent dramatic drop of 26.7% was primarily driven by technical signals, particularly the KDJ Death Cross, which indicated a potential downward trend. This momentum indicator, combining %K and %D lines, turned bearish, suggesting overbought conditions reversing to oversold. The lack of fresh fundamental news and the absence of institutional sell-offs further highlighted the role of retail or algorithmic selling in the stock's decline.

The high trading volume, exceeding 17 million shares, was not accompanied by block trading data, indicating that the drop was likely due to small investors or automated strategies reacting to the KDJ signal and price drops. The thin liquidity of Graphjet, with a market cap of $21.6 million, exacerbated the price swings, as even moderate selling could cause sharp declines.

Peer performance analysis showed no unified trend among Graphjet's peers, suggesting that sector rotation was not the cause of the crash. Most peers remained stable or rose slightly, except for a few outliers, indicating that Graphjet's drop was an isolated event tied to its own technicals or liquidity issues.

In conclusion, Graphjet's recent volatility underscores the risks associated with low-liquidity stocks. Technical signals, such as the KDJ Death Cross, can significantly impact stock prices, especially in volatile markets. Traders should always consider liquidity and peer performance when analyzing micro-cap stocks to avoid being caught in self-reinforcing cycles of panic selling.