Why is Lake Resources stock price up 17% today?

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The Lake NL Resources (ASX: LKE) The stock price is up on Tuesday despite the lack of announcements from the company.

When the market opened, shares of the clean lithium developer were trading for $1.125 each.

However, investors have upped the ante on the company’s shares as confidence grows in the market.

In the early afternoon, shares of Lake Resources are selling for $1.26 each, up 17.21%.

Let’s take a look at what has generated excitement around this company.

What drives the Lake Resources stock price higher?

Lake Resources stock price is on the move on bullish sentiment among investors S&P/ASX 300 Metals & Mining (ASX: XMM).

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

For context, share with 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 continue to rebound strongly. This comes after being sold in June and July following an attack by short sellers.

Nevertheless, it looks like investors are closing their positions after the company was one of the most shorted stocks.

Short selling is a common trading strategy that aims to profit from a falling price of a security. The objective 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-term interest within companies.

Thus, Lake Resources had 10.41% of its shares sold short by investors, an improvement of 0.39% on the week.

Lake Resources Stock Price Summary

Despite its extreme volatility of late, Lake Resources’ stock price has climbed 97% in the past 12 months.

Renewed investor sentiment within the battery industry helped support the stock price.

Based on today’s price, Lake Resources presides over a market capitalization of approximately $1.29 billion.