EQT breaks back above 20-day moving average
EQT Corporation (EQT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EQT ended the week 7.85% higher at 13.74 after gaining $0.57 (4.33%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing above Thursday's high at 13.70, the market confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (EQT as at May 22, 2020):
Friday's trading range has been $0.99 (7.55%), that's slightly above the last trading month's daily average range of $0.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EQT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The stock managed to close back above the 20-day moving average at 13.50 for the first time since May 8th. When this moving average was crossed above the last time on May 8th, EQT actually lost -5.86% on the following trading day. The share found buyers again today around 12.86 for the third trading day in a row after having found demand at 12.91 in the prior session and at 12.92 two days ago.
Although EQT is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for EQT. Out of 305 times, EQT closed lower 56.72% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.77% with an average market move of -0.39%.