Lithium Australia Up on Positive Announcements (ASX:LIT)

The Perth-based company is showing no signs of slowing down, with a string of positive announcements throughout the COVID-19 pandemic.

The Lithium Australia NL [ASX:LIT] share price is up 6.67% at the time of writing, to trade at $0.064 per share. The $36 million company is doing some interesting things in the lithium world.

ASX LIT Share Price Chart 1

Source: Optuma

What’s happening at Lithium Australia?

Over the last few years lithium seems to have been all the rage. With battery-powered cars becoming more popular and the likes of Telsa Inc [NASDAQ:TSLA] becoming not only one of the world’s leading car companies, but a cultural icon to go with it, the talk of the lithium boom is ever present.

ASX Lithium Australia Share Price Chart 2

Source: Optuma

While all the hype is there of getting on board the lithium train, it hasn’t always translated into booming stock prices for all involved.

As you can see — anyone that got in around the peak back in April 2016, 51 months back, would now be down over 80%!

For their part, Lithium Australia is working hard on projects to get things moving in the right direction.

In a recent announcement the company gave news of a partnership with Soluna Australia Pty Ltd, an incorporated joint venture — 50% Lithium Australia NL (ASX:LIT, ‘the Company’) and 50% DLG Energy (Shanghai).

Soluna will provide residential energy storage systems for peace of mind of blackout protection and will also play an increasingly important role in ensuring grid stability.

This is coupled with news that the company together with ANSTO (Australian Nuclear Science and Technology Organisation) is continuing R&D on its revolutionary lithium-recovery technologies to produce critical battery chemicals.

These projects along with others in the pipeline are helping Lithium Australia move its stock price back up!

Where to from here for the LIT share price?

ASX LIT Share Price Chart 3

Source: Optuma

The price is currently trading just below the resistance level of $0.066, if the upswing continues and can push through this level, then the level of $0.077 may provide future resistance.

On the downside if the price were to fall, then the levels of $0.05 and $0.045 may provide future resistance.

Worth noting though, that recent trading has taken place on some unpredictable volume, making it hard to judge which way this will go.


Carl Wittkopp,
For Money Morning

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Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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