EQT breaks back below 20-day moving average
EQT Corporation (EQT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EQT finished Thursday at 6.96 losing $0.77 (-9.96%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EQT as at Mar 26, 2020):
Thursday's trading range has been $1.58 (20.41%), that's slightly above the last trading month's daily average range of $1.35. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EQT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 6.27 (S1). The share closed back below the 20-day moving average at 7.24. When this moving average was crossed below the last time on Monday, EQT actually gained 19.64% on the following trading day. After having been unable to move lower than 6.85 in the prior session, the stock found buyers again around the same price level today at 6.68.
Though EQT is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EQT. Out of 157 times, EQT closed higher 54.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 52.23% with an average market move of -0.09%.