Natural gas giant EQT (EQT) is trading 0.3% higher at $55.87, struggling to recover from a recent pullback from its June 23 record peak of $61.02. The shares are enjoying a floor of support from the formerly resistant $55 level, with a historically bullish trendline just below. While the equity remains up 22% this year, another overdue boost could be looming.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, EQT is within one standard deviation of its 50-day moving average. EQT was higher than this this trendline in at least eight of the last 10 trading days and spent 80% of the last two months above it. Within these parameters, 12 other signals occurred in the past five years, after which the equity was higher one month later 67% of the time, averaging a 5.5% pop. A move of comparable magnitude would place EQT back near $60 — within a chip-shot of its record high.
Now looks like a good time to weigh in with options, too. EQT’s Schaeffer’s Volatility Index (SVI) of 34% ranks in the 12th percentile of its annual range, meaning options traders are pricing in low volatility expectations.