Momentus Plummets 23% Intraday: What's Behind the Sudden Freefall?

Summary
• Momentus (MNTS) slumps 23.8% to $6.86, hitting 52-week low of $6.415
• Intraday range spans $8.6649 high to $6.415 low, signaling extreme volatility
• RSI at 94.29 suggests overbought reversal risk amid sharp decline

Today’s dramatic selloff in Momentus has sent shockwaves through the aerospace sector. With the stock trading at its lowest level since late 2024, traders are scrambling to decipher the catalyst behind this unprecedented drop. The $2.14 intraday loss represents a staggering 23.8% collapse from the previous close, raising urgent questions about market sentiment and technical triggers.

Overbought Reversal and Volatility Exhaustion
The 23.8% intraday plunge in Momentus appears to stem from a classic overbought reversal pattern. With RSI at 94.29 - an extreme overbought level - the stock was primed for a corrective move. The MACD histogram (0.95) showed positive momentum, but the price action decisively broke below the Bollinger Bands lower boundary (-3.86) triggering stop-loss cascades. This technical breakdown coincided with the stock trading at just 76% of its 30-day moving average (1.50), amplifying bearish signals.

Technical Divergence and Positioning Opportunities
• 200-day average: 1.49 (far below current price)
• RSI: 94.29 (overbought divergence)
• MACD: 1.42 (bullish) vs. Histogram: 0.95 (positive momentum)
• Bollinger Bands: Price at -3.86 (lower band) indicating extreme volatility

The technical divergence creates a high-risk, high-reward environment. Key support levels at 0.63-0.80 (30D) and 1.15-1.32 (200D) could dictate near-term direction. With no options liquidity available, traders should focus on strict stop-loss placement below $6.415. The 52-week low acts as critical psychological support; a break below this level would validate a long-term bearish trend.

Backtest Momentus Stock Performance
The backtest of MNTS's performance after an intraday plunge of at least -24% from 2022 to the present shows mixed results. While the 3-day win rate is high at 41.79%, the 10-day win rate drops to 36.25%, and the 30-day win rate is 44.46%. The average returns over these periods are negative, with a -0.78% return over 3 days, a -3.21% return over 10 days, and a -0.30% return over 30 days. The maximum return during the backtest was only 1.66%, indicating that MNTS often struggled to recover from the significant intraday plunge.

Urgent Action Required as Technicals Deteriorate
The technical picture for Momentus has deteriorated rapidly, with overbought reversal patterns now fully materializing. Traders must monitor the $6.415 intraday low as a critical decision point - a break below this level would confirm a breakdown from long-term range trading. With sector leader Lockheed Martin (LMT) down just 0.18%, the selloff appears stock-specific rather than sector-driven. Immediate action: establish tight stop-loss orders below $6.415 and prepare for potential follow-through selling into the 52-week low.