Why is the Core Lithium share price surging 8% on Tuesday?

The Core Lithium Ltd (ASX: CXO) share price is taking off once more today.

At the time of writing, shares in the lithium developer are trading for $1.475 apiece, 8.46% higher than their previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.02% right now.

 So, what might be going on with the ASX 200 materials share today? Let’s take a look.

What’s going on with the Core Lithium share price?

The Core Lithium share price is racking up a decent gain for a second consecutive session, lifting another 8% to trade at its highest point in nearly three weeks.

The lithium favourite also gained 6% yesterday amid a strong performance from its home sector and a top broker’s bullish outlook on lithium prices.

This week’s gains follow a few weeks of poor performance. Indeed, the stock tumbled 20% between its mid-August high of $1.665 – one cent off its all-time high – and Friday’s close of $1.29.

Interestingly, there’s only been outwardly good news from the ASX 200 lithium share over the last month.

The company updated the market on its exploration activities in the middle of August and announced an extension to its offtake negotiations with Tesla Inc (NASDAQ: TSLA) last Monday.

But the Core Lithium share price hasn’t been alone in its recent struggles. The S&P/ASX 200 Materials Index (ASX: XMJ) fell a disastrous 10% between 26 August and 2 September.

Much of that fall occurred on Friday. Then, the sector tumbled 5% as many of its constituents, including resources giant BHP Group Ltd (ASX: BHP) traded ex-dividend.

The Core Lithium share price is leading the sector on Tuesday. It’s out in front of its fellow ASX 200 lithium shares Lake Resources NL (ASX: LKE), Liontown Resources Limited (ASX: LTR), Pilbara Minerals Ltd (ASX: PLS), and Allkem Ltd (ASX: AKE). They’ve gained 7.7%, 5%, 6.3%, and 4.4% respectively at the time of writing.

The post Why is the Core Lithium share price surging 8% on Tuesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

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 Core Lithium share price cruising 5% higher today?
• Where does Tesla get its lithium and do any ASX shares benefit?
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/R629nxd