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The Lake NL Resources (ASX:LKE) stock price rises today.
At the time of writing, the lithium stock is trading up 11% to 69.5 cents apiece, rebounding from its 52-week low of 60.5 cents on July 14.
In larger market movements, the S&P/ASX 300 Metals & Mining Index (ASX:XMM) is limited, currently down 0.23% in the early afternoon.
Why is the Lake Resources stock price rising?
Investors pushed the share higher without news today. Of note, however, is the price of lithium carbonate.
It has remained strong in recent months at $103,154 a tonne, as other commodity sectors retreated from earlier highs.
For example, ahead of its rally today, Brent Crude – the global oil benchmark – had slumped over the past month, after hitting multi-year highs in March.
So, as a basket, lithium stocks have been getting stronger lately. Nevertheless, they have yet to recover from a sharp decline suffered earlier in the year.
Lake fell from a 52-week high of $2.45 on April 5. After plateauing around May, the rug was pulled below again midway through the June sell-off, as pictured below.
Additionally, Lake Resources’ stock price is recovering from the effects of a scathing research report from short seller J Capital.
Lake Resources refuted the claims, saying the report “presents incorrect information on technical matters and inaccurate statements about Lake Resources’ progress to date.”
Although Lake issued a response to the report’s claims, the fallout has so far added to the company’s losses in 2022.
The stock was also one of the most shorted names on the ASX last week.
As TMF reported on July 15, “[a]about 9.6% of its stock was in the hands of short sellers at last count.”
Over the past year, Lake Resources’ stock price has gained more than 80%.