Zentek Skyrockets 23.25%—What’s Fueling This Graphite Breakout?

Summary
• Zentek’s stock surges 23.25% intraday to $0.8258, defying a 52-week low of $0.50
• Ontario’s $500,000 CMIF grant for Albany Graphite’s purification project sparks frenzy
• Technicals show RSI at 18.17 (oversold) and Bollinger Bands squeezing near $0.652 support

Zentek’s (ZTEK) 23.25% intraday rally has ignited a frenzy among investors, driven by a $500,000 grant for its Albany Graphite project. The stock’s meteoric rise from $0.652 to $0.8258—despite a 52-week low of $0.50—has positioned it as a breakout candidate. With technicals flashing oversold conditions and a $1.24 intraday high, the question looms: Is this a short-term spike or a catalyst for a sustained rally?

Ontario Grant Ignites Graphite Purification Hype
Zentek’s 23.25% surge is directly tied to its subsidiary Albany Graphite Corp. securing a $500,000 grant from Ontario’s Critical Minerals Innovation Fund (CMIF). The funding accelerates purification of the company’s ultra-high-purity graphite for lithium-ion batteries and nuclear applications. Recent proof-of-concept tests achieved 99.9991% purity, a breakthrough in the $125/kg graphite-per-vehicle EV market. The project’s collaboration with Natural Resources Canada and five North American firms further validates its potential to disrupt the battery supply chain.

Technical Setup: Oversold RSI and Bollinger Squeeze Signal Rebound Potential
• RSI: 18.17 (oversold)
• Bollinger Bands: Price at $0.652 (lower band), 200D MA at $1.1186 (above current price)
• MACD: -0.0806 (bearish) vs. signal line -0.0821 (neutralizing)
• Kline pattern: Short-term bearish, long-term ranging

Zentek’s technicals suggest a potential rebound from oversold levels. The RSI at 18.17 indicates extreme undervaluation, while the Bollinger Bands compression near $0.652 hints at a breakout. The 200-day MA at $1.1186 remains a critical resistance. Aggressive bulls may target a bounce above $0.7594 (middle Bollinger band) to test the $1.24 intraday high. With no options data available, focus remains on price action and the $0.67 previous close as a pivot point.

Backtest Zentek Stock Performance

Breakout or Bubble? Watch $0.7594 and the 200D MA for Clarity
Zentek’s 23.25% surge is a high-stakes gamble on its graphite purification project’s scalability. While the CMIF grant validates its technology, the stock’s 52-week low of $0.50 and -21.6x PE ratio underscore its speculative nature. Investors should monitor the $0.7594 (middle Bollinger band) and $1.1186 (200D MA) for directional clues. Meanwhile, the sector leader Graphjet (GTI) fell 2.5%, signaling mixed sentiment in industrial metals. For ZTEK, a sustained close above $0.7594 could reignite momentum—watch for it.