Novonix share price fights to stay in the green on Monday

Tech is leading the ASX today.

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Key points

  • Novonix shares are surging higher on Monday after a rough period of downward mobility
  • The wider tech sector is also charging higher on Monday, spurring gains across many beaten-down tech names
  • In the last 12 months the Novonix share price has managed to hold onto a 96% gain

Shares of battery technology company Novonix Ltd (ASX: NVX) have lifted on Monday and now trade 1.36% in the green at $3.73.

The Novonix share price has traded as high as $3.98 and as low as $3.71 up until the point of writing.

In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is trading more than 1.8% higher as ASX tech shares begin to show signs of life. Early in the day the tech index reached a 3.8% peak.

What’s up with Novonix shares?

Shares in the company have collapsed from their former glory after shifting downwards at pace over the last six months.

In that time, shares have crumbled from a high of $12.15 to their current levels – a collapse of 69%.

This year to date, shares have faltered 59.4%, meaning Novonix needs to rally ~150% to return to these former highs.

Brokers aren’t constructive on the stock either – it has extremely narrow coverage, and just one analyst, Morgans, advocates its clients to hold Novinix shares at present, according to Bloomberg data.

However, tech shares are showing signs of life once more on Monday. The index tracking the sector has levelled off in today’s session and is running in the green, resulting in a sector-wide rally across many beaten-down names.

As such, companies like Novonix are benefitting from the resurged confidence, as hungry investors look for a cheap meal during market hours on Monday.

Trading volume is also at 60% of its four-week average as investors continue bidding up Novonix shares on Monday.

Novonix share price snapshot

Despite its difficulties this year, the Novonix share price has held onto a 96% gain over the last 12 months.

In the past month, however, it has collapsed 39% into the red.

Based on the current share price, Novonix presides a market capitalisation of $1.78 billion.

Motley Fool contributor Zach Bristow 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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