Novonix share price down 6% on Tuesday, what’s happening?

The Novonix Ltd (ASX: NVX) share price is on course to record a disappointing decline.

In afternoon trade, the battery technology company’s shares are down 6% to $2.33.

This means the Novonix share price is now down almost 80% since the start of the year.

Why is the Novonix share price under pressure?

Investors have been selling down the Novonix share price despite there being no news out of the company.

However, the company certainly isn’t alone posting a heavy decline today. A number of shares that are higher up the risk scale have been sold off today.

This includes lithium shares such as Argosy Minerals Limited (ASX: AGY), Lake Resources N.L. (ASX: LKE), and Vulcan Energy Resources Ltd (ASX: VUL). All three are down no less than 4% this afternoon.

In addition, loss-making tech companies such as Life360 Ltd (ASX: 360), Tyro Payments Ltd (ASX: TYR), and Zip Co Ltd (ASX: ZIP) shares are also recording sizeable declines.

What’s going on?

Investors appear to have concerns that the recent rebound from higher risks shares was a dead cat bounce and won’t be sustained.

This follows comments from Trevor Greetham, head of multi-asset at Royal London Asset Management.

Greetham, who oversees US$200 billion of assets under management, warned that the bear market isn’t over yet. He told CNBC:

We still think we’re in a bear market and we think that this is as you describe it, a relief rally, and what we’ve seen so far is just the interest rate-driven part of that bear market.

All the biggest up days are in bear markets, so don’t get too sucked back into markets, I would say. This rally could persist a bit longer, but don’t think this is the end of the bear market – I think there’s quite a bit more time to run through, and you’ve got to be tactical and you’ve got to be diversified.

The post Novonix share price down 6% on Tuesday, what’s happening? appeared first on The Motley Fool Australia.

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More reading

• Wow! Novonix share price rebounds off a 52-week low to surge 11%
• Why is the Novonix share price plunging 6% on Wednesday?
• Why is the Novonix share price charging 7% higher today?
• These were the worst performing ASX 200 shares last week
• Novonix share price loses 20% in dire week for ASX 200 tech stocks

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc., Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Tyro Payments. 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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