Why did the Lake Resources stock price plunge 10% today?

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The Lake NL Resources (ASX: LKE) The stock price slipped deep into the red in Monday afternoon trading.

At the close of trade, shares of Lake Resources ended down 10.13% at $1.07 apiece with no news.

In large market movements, the S&P/ASX 300 Metals & Mining Index (ASX:XMM) also ended the day lower, down 2.42%.

What’s going on with the Lake Resources stock price?

Lake shareholders have been on a rollercoaster ride over the past three months, as shown in the chart below.

Prices fell from highs of $1.66 in June to lows of 60.5 cents on July 15, only to rally to highs of $1.59 on August 11.

TradingView Chart

Now investors have brought Lake Resources’ share price back to its current ranges. And just last week, we noted that the share jumped 75% in the last month of trading.

As for the reasons for today’s drop, the price of lithium was certainly not to blame. Lithium carbonate remains up 336% year on year and is up nearly 3.5% in the past month.

However, the metals and mining industry sold off today. As mentioned above, the benchmark Metals & Mining Index is down 2.42%, signaling a strong sell-off in the basket today.

Additionally, recent earnings published by another lithium player Pilbara Minerals Ltd (ASX:PLS) also pointed to price strength in the lithium market.

Not to mention, the recent United States Congress Inflation Reduction Act “effectively extends tax relief for new purchases of electric vehicles.” by Trading Economics.

“On the supply side, the energy crisis in China caused by record heat waves has led several lithium producers in Sichuan to suspend operations, adding to rising lithium costs in the near term,” he said. he adds.

Alas, the Lake Resources share price continues its decline of the past few weeks.

Despite this, it remains up over 94% in the last 12 months of trading.

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