Why is the Lake Resources share price powering up 17% today?

The Lake Resources N.L. (ASX: LKE) share price is up and away on Tuesday despite no announcements from the company.

At market open, the clean lithium developer’s shares were swapping hands for $1.125 apiece.

However, investors have been bidding up the company’s shares as confidence grows in the market.

During early afternoon trade, Lake Resources shares are fetching $1.26 apiece – up 17.21%.

Let’s take a look at what’s been driving the excitement around this company.

What’s driving the Lake Resources share price higher?

The Lake Resources share price is on the move following upbeat sentiment among the S&P/ASX 300 Metals and Mining (ASX: XMM) sector.

As such, the benchmark index, representing a number of companies that produce gold, steel, and/or precious metals, is up 0.9%.

For context, shares in peers Sayona Mining Ltd (ASX: SYA) and Core Lithium Ltd (ASX: CXO) are up 10.2% and 7.72%, respectively.

While Lake Resources’ last announcement was its quarterly report, its shares are continuing to strongly rebound. This comes after being sold off during June and July on the back of a short-seller attack.

Nonetheless, it seems that investors are closing their positions after the company was one of the most heavily shorted stocks.

Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow and then sell the shares, and buy them back at a lower price for a profit.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.

As such, Lake Resources had 10.41% of its shares being shorted by investors, an improvement of 0.39% over the week.

Lake Resources share price recap

Despite its extreme volatility of late, the Lake Resources share price has zipped 97% higher in the past 12 months.

Renewed investor sentiment within the battery industry has helped support the share price.

Based on today’s price, Lake Resources presides a market capitalisation of roughly $1.29 billion.

The post Why is the Lake Resources share price powering up 17% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the Lake Resources share price leaping 11% today?
• These are the 10 most shorted ASX shares
• Why did the Lake Resources share price lag the ASX 200 in July

Motley Fool contributor Aaron Teboneras 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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