Technical Signal Analysis of Rongbai Technology (688005) Plunge After Resumption of Trading

Based on the above data analysis, below is a complete technical signal analysis of the 11.16% plunge of Rongbai Technology after resumption of trading:

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Rongbai Technology announced on the evening of January 13, 2026 that it had signed a procurement cooperation agreement with Contemporary Amperex Technology Co., Limited (CATL) for lithium iron phosphate cathode materials with an estimated total value of over RMB 120 billion, with an agreement period from Q1 2026 to 2031 and an expected supply of 3.05 million tons of products [1]. Immediately after the announcement was released, the company received an inquiry letter from the Shanghai Stock Exchange (SSE), requiring it to supplement the disclosure of contract details and proof of performance capabilities. From January 14 to 18, Rongbai Technology’s stock was suspended from trading.

On the evening of January 18, in its response to the SSE’s inquiry letter, Rongbai Technology admitted that

, and the final sales scale and amount are uncertain [2]. On the same day, the company received a “Filing Notice” from the China Securities Regulatory Commission (CSRC), and was placed under investigation for suspected misleading statements in the major contract announcement. On January 19, the day the stock resumed trading, the company’s stock opened at the limit-down price of RMB 29.88 per share, and closed at RMB 33.18 per share, , with a market value evaporation of approximately RMB 3 billion [3].

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Moving Average	Price	Relationship with Current Price
5-day MA	RMB 35.66	Current price of RMB 33.09 has broken below
10-day MA	RMB 35.54	Current price of RMB 33.09 has broken below
20-day MA	RMB 34.25	Current price of RMB 33.09 has broken below

: The current stock price has broken below all short-term moving averages (5-day, 10-day, and 20-day), forming a , indicating a clear weakening of the short-term trend. The 5-day MA and 10-day MA have formed a “death cross”, a typical short-term sell signal [0].

Indicator	Value	Signal Status
DIF(MACD)	1.3994	Below zero line
DEA(Signal)	1.6570	Below zero line
MACD Histogram	Negative	Bearish momentum

: The MACD indicator is below the zero line and in a , indicating that the mid-term trend remains weak. The MACD histogram is negative, showing that bearish momentum continues to dominate [0].

Indicator	Value	Signal Status
K Value	41.2	Weak range
D Value	59.2	Weak range
J Value	5.3	Severely oversold

: The , which has broken below the oversold threshold of 20. Although the mid-term indicators show weakness, the severely oversold J-value suggests potential for a [0].

Indicator	Value	Signal Status
RSI(14)	48.76	Weak but not oversold

: The RSI is at 48.76; although it has not entered the traditional oversold zone (<30), it has broken below the 50 midline, indicating that [0].

Band	Price
Upper Band	RMB 39.35
Middle Band	RMB 34.25
Lower Band	RMB 29.15

: The current price is at the 38.7% position of the Bollinger Bands (with 0% being the lower band and 100% being the upper band), leaving approximately 12% space from the lower band support level. The Bollinger Bands have expanded slightly, indicating increased short-term volatility [0].

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Trading volume data on the day of resumption (January 19) reveals important market behavior signals:

• Opened at the limit-down price of RMB 29.88 per share, but closed at RMB 33.18 per share
• Trading volume increased significantly on the day, showing
  a game between panic selling and bottom-fishing funds
• The amplitude reached 17.47%, with fierce game between bulls and bears

In the 5 trading days before the suspension (December 30, 2025 to January 10, 2026), the stock price rose by approximately 17% cumulatively, with suspicion of

, and it cannot be ruled out that some funds obtained information in advance and entered the market [1][2].

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• First Resistance Level
  : RMB 35.00 integer level
• Second Resistance Level
  : 5-day MA (RMB 35.66)
• Third Resistance Level
  : 10-day MA (RMB 35.54)

• First Support Level
  : RMB 30.00 integer level
• Second Support Level
  : Bollinger Bands Lower Band (RMB 29.15)
• Third Support Level
  : December Low (RMB 25.48)

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1. Moving Average System
   : Price broke below all short-term moving averages, forming a bearish alignment
2. MACD
   : Death cross below the zero line, mid-term trend is weak
3. KDJ
   : Both K and D values are in the weak range
4. Trading Volume
   : Obvious panic selling on the resumption day
5. Fundamentals
   : CSRC investigation brings systemic risks

1. KDJ J-value
   is below 20, severely oversold
2. Bollinger Bands
   lower band provides technical support
3. Repair rebound
   may occur after consecutive declines

• Short-term
  : Oversold repair rebound is expected, but the upside is limited
• Mid-term
  : Wait for stabilization signals, may enter a consolidation and bottom-building phase
• Risk Point
  : If it breaks below the RMB 30 integer level, a new round of decline may start

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The chart above shows Rongbai Technology’s K-line trend from December 2025 to January 2026, where you can clearly see:

• The uptrend before the suspension (before January 13)
• The technical pattern after the resumption plunge
• The death cross status of the moving average system
• The position of the Bollinger Bands

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Investor Type	Suggestion
Risk-averse	Mainly wait and see , wait for stabilization signals
Risk-tolerant	Can take small positions to bet on rebound, strict stop-loss
Holders	Pay attention to the RMB 30 support level, consider reducing positions if it breaks below

• Stop-Loss Level
  : RMB 30.00 integer level
• Take-Profit Level
  : RMB 34-35 range (near the 5-day MA)

Fundamental bearish factors (CSRC investigation) are in a game with technical oversold conditions. It is recommended that investors closely follow the progress of subsequent regulatory investigations, the company’s actual production capacity, and changes in trading volume. It is advisable to remain cautious before the results of the regulatory investigation are clarified [1][2][3].

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[1] Sohu - Behind the CSRC Investigation into Rongbai Technology Over Suspicious RMB 120 Billion Order

[2] Securities Times - The Whole Story of Rongbai Technology Being Filed for Investigation Over the “RMB 120 Billion Order” Touching Compliance Red Lines

[3] Sina Finance - Rongbai Technology’s RMB 100 Billion Order Farce Devastates Its Stock Price