The hype around the Standard Lithium share seemed to know no bounds until just over a week ago. The stock market value of the company at times approached the mark of one billion US dollars. For a company that has not earned a penny to date and is only working on the construction of its first lithium mine, this is daring.
It was foreseeable that sooner or later there would be a sustained correction. Such a correction can currently be observed in the entire lithium sector, after China shocked the stock exchange participants with somewhat weak economic data. Fears promptly spread that demand for the coveted raw material might be lower in the future than previously thought.
That went quickly
How enormously the standard lithium had swelled is shown by the speed of the current devaluations. Since the all-time high of 7.69 euros last Wednesday, th paper has lost about a third of its value. Yesterday, at the close of trading, only 5.15 euros were on the ticker.
So far, this development could not even be slowed down. Tuesday again brought very significant losses. The shareholders had to watch how the paper moved by another 9.5 percent to the south.
What happens now with the Standard Lithium share?
What happens next for the Standard Lithium share is still completely open. Since the exciting rally was built almost exclusively on speculation and hopes, there is basically a lot of air to the bottom. The first chart supports can only be located a good bit below the 5 euro mark.
Nevertheless, there is no denying that lithium prices are still at a very high level and that the prospects for the future remain good. This makes it difficult to sound out a fair value for the Standard Lithium share. Instead of a bottoming out, we should rather expect continued fluctuations for the time being.