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Shares of Lake NL Resources (ASX:LKE) jumped around 11% in early Friday afternoon trading, now pulling back slightly to rest at $1.46 apiece.
Despite the absence of market-sensitive news, investors have rallied Lake Resources’ share price from a low of $1.32 as the stock appears to be reversing from a trend higher. decrease.
Zooming out to a longer-term view, Lake Resources’ share price is up 45% year-to-date.
What’s going on with the Lake Resources stock price?
ASX lithium stocks such as Lake have come under heavy attack this week amid great weakness in the broad segment, seeing just about every miner down at least 10% by the end of play on Thursday.
Investors sold off lithium players at a rapid pace amid the release of a bearish note from Goldman Sachs slashing its forecast for lithium prices.
Further headwinds via a price cap on lithium carbonate of US$53 per kg from Argentina, a potential battery substitute, and electric vehicle maker BYD’s possible purchase of six lithium mines in Africa , weighed on the outlook for lithium producers.
Despite the calamity, lithium carbonate prices are buoyant and remain very high at A$96,884 per tonne.
The strength in the price of lithium may be one of the factors behind Lake Resources’ stock price resurgence today.
Large accounts and institutional investors who back the company are likely to be buyers at these pullback levels, particularly if they hold shares of Lake Resources under an investment mandate.
Volume is also above 9.6 million shares and trending higher, more than half of the 4-week average of 17.99 million shares.
A total of 581,292 shares settled in the $1.45-$1.467 range during today’s session with a block of 177,705 shares of remarkable size, according to Bloomberg data.
After paring much of the gains in 2022, the price of Lake Resources has still maintained a 423% gain over the past 12 months of trading.