Why is the Novonix share price charging 7% higher today?

Man with rocket wings which have flames coming out of them.

Man with rocket wings which have flames coming out of them.

The Novonix Ltd (ASX: NVX) share price has been a strong performer on Tuesday.

In afternoon trade, the battery technology company’s shares are up 7% to $2.51.

This makes the Novonix share price one of the best performers on the ASX 200 index today.

Why is the Novonix share price shooting higher?

Investors have been bidding the company’s shares higher today despite there being no news out of it.

However, it is worth noting that a number of beaten down shares are climbing particularly strongly today amid a broad share market recovery.

Beaten down battery metals and lithium shares such as Argosy Minerals Limited (ASX: AGY), Chalice Mining Ltd (ASX: CHN), and Sayona Mining Ltd (ASX: SYA) are also charging notably higher today.

Though, despite today’s gains, this group of shares is still down materially in recent weeks. For example, the Novonix share price remains down 37% over the space of the month, with Chalice and Sayona recording similarly severe declines.

In light of this, it’s possible that today’s buying could be from investors that believe these shares have been oversold.

Time will tell if they hold onto these gains or give them back if/when the market volatility returns.

The post Why is the Novonix share price charging 7% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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