My example of CHN in the previous post is to illustrate that darling stocks in darling sectors typically FRONT-END their potential , in other words their valuation at the time they hit their peak price had over-imputed its potential amidst speculative hype and exuberance in overdrive.
We saw that with gold miners too. NST which is the better ASX gold mining stock is still >10% below its peak price in Nov 2020 , more than 3 years ago, despite gold price having made new all time highs. The advantage that gold miners have is that at least their output is recession proof i.e they won't have to fear about a lack of demand.
IMO lithium sector/stocks are experiencing the same journey south, pass their peaks and more likely to complete their Nordique retracement over the balance of the year, rather than scale higher to their previous peak. The EV bubble has stalled - which is not to say that EV growth won't be good, they would be fairly good - but the valuation premiums once given to EV/lithium sector would no longer be there as the industry would be going through a period of consolidation. And if lithium stocks continue to face winter headwinds in their stock price, especially with a forthcoming likely market correction, we should expect the last breath of speculative fervour to end, with listless trading amidst a general disinterest to set in to usher the true bottoming process for the lithium sector.
