EQT runs into sellers around 14.52 for the third day in a row
EQT Corporation (EQT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
EQT finished the month 22.02% higher at 14.52 after gaining $0.28 (1.97%) today, significantly outperforming the S&P 500 (0.77%). Today's close at 14.52 marks the highest recorded closing price since June 12th. Trading up to $0.37 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EQT as at Jul 31, 2020):
Friday's trading range has been $0.77 (5.45%), that's slightly below the last trading month's daily average range of $0.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for EQT. Prices continued to consolidate within a tight trading range between 13.49 and 14.54 where it has been caught now for the last three trading days.
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 last time a Last Engulfing Top Pattern showed up on May 22nd, EQT actually gained 7.35% on the following trading day.
Buyers managed to take out the key technical resistance level at 14.36 (now S1), which is likely to act as support going forward. The stock ran into sellers again today around 14.52 for the third trading day in a row after having found sellers at 14.54 in the prior session and at 14.49 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 14.54 where further buy stops could get triggered. As prices are trading close to July's high at 14.76, upside momentum might speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EQT. Out of 116 times, EQT closed higher 52.59% of the time on the next trading day after the market condition occurred.