Wow! Novonix share price rebounds off a 52-week low to surge 11%

Team celebrating corporate success screaming with joy.Team celebrating corporate success screaming with joy.

It’s been a fairly positive day for the S&P/ASX 200 Index (ASX: XJO) and ASX shares so far this Friday. At the time of writing, the ASX 200 is up 0.22% at 6,543 points. But it’s been an even better day for the Novonix Ltd (ASX: NVX) share price.

Novonix shares are presently enjoying a 10.7% bounce to $2.38 each. It was only yesterday that this ASX battery technology share was recording a new 52-week low of $2.07 a share. That price was more than 82% off the all-time high of $12.47 a share that we saw back in December last year.

But Novonix shares are seemingly putting all of that behind them today.

So what’s going on here?

Why are Novonix shares jumping on an 11% rocket?

Well, it’s nothing out from the company itself, given Novonix has not released any news or announcements since 14 June.

However, we are seeing a bit of a trend forming on the ASX boards today. ASX battery and lithium shares are on fire this Friday.

In addition to Novonix’s move, we have Pilbara Minerals Ltd (ASX: PLS) up 6.8%, Core Lithium Ltd (ASX: CXO) up 7.7%, and Liontown Resources Limited (ASX: LTR) rising 11.1%.

This comes after a bullish prediction regarding lithium was aired yesterday.

As we covered at the time, broker Macquarie has upgraded its forecast for lithium prices. It “now expects spodumene prices to peak at US$4,900 a tonne in the September quarter”. As a result, Macquarie “has upgraded its short-term and medium-term forecasts by 8% to 13% per tonne”.

So perhaps it is this bullish prediction that has investors all riled up over lithium and battery shares today. Or perhaps investors just decided that the share prices of Novonix and others we were seeing yesterday were too cheap, and have bought back in today.

Whatever the reason, it’s certainly been a pleasing day for Novonix shareholders thus far on Friday.

At the current Novonix share price, this ASX battery share has a market capitalisation of $1.17 billion.

The post Wow! Novonix share price rebounds off a 52-week low to surge 11% appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 recommended Macquarie Group Limited. 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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