EQT: Potential Cup & Handle in Natural Gas FrackerEQT is a natural-gas fracking company that’s benefited from Europe’s energy crisis. It may also be attempting a breakout.
The main pattern on today’s chart is the low near $31 in early July and the higher low above $40 one month later. The combination could be a cup & handle, a potentially bullish continuation pattern based on the previous uptrend.
Next, the second higher low occurred at the 50-day simple moving average (SMA). That may suggest intermediate-term momentum is turning bullish.
Third is the level around $46.70. EQT gapped below this line on June 13 when energy tumbled. It was resistance again in late July as prices rebounded, but then gave way in mid-August. Consider how the stock dipped below this line on Tuesday before closing back above it. Has old resistance become new support?
Finally, you have confluence with the orange 21-day exponential moving average (EMA). The combination of that potential support and the EMA could help traders manage potential entries if they expect prices to continue higher.
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