Core Lithium share price shakes off oversupply concerns to march 8% higher today

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The Core Lithium Ltd (ASX: CXO) share price is up 6.7% in early afternoon trading.

Shares in the ASX lithium explorer closed yesterday at $1.20 and are currently trading for $1.28.

It was only last Wednesday, 1 June, that Core Lithium shares fell 20.8% in a single trading day.

That sell-off came as ASX investors digested a report from Goldman Sachs indicating that the lithium space has seen too much money pour into it too quickly. The influential broker believes that medium term supply will outpace the growth in demand and that lithium prices are due for a sharp correction.

Most every ASX lithium share sold off on the day.

But investors appear to believe the selling action was overdone, possibly influenced by more positive outlooks for the lithium space by other market analysts, including the team at Macquarie.

Bargain hunters helped the Core Lithium rebound 2.7% on Thursday and gain another 7% on Friday. Shares dipped 1.7% yesterday before marching higher again today.

Core Lithium share price snapshot

Long term shareholders have been well rewarded, with the Core Lithium share price up 355% over the past year and up 1,715% over the past five years.

For some context, the All Ordinaries Index (ASX: XAO) is down 2% over the past 12 months and up 29% in five years.

At the current share price, Core Lithium has a market cap of $2.1 billion.

The post Core Lithium share price shakes off oversupply concerns to march 8% higher today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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