Energy Stock Could Bounce Off Bullish Trendline
According to Schaeffer's Senior Quantitative Analyst Rocky White, EQT is within one standard deviation of its 126-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, five other signals occurred in the past five years, after which the equity was higher one month later 60% of the time, averaging a 7.1% gain.
Short-term options traders have been much more bearish than usual. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.36, which ranks in the 92nd percentile of annual readings. An unwinding of this pessimism could create additional tailwinds for EQT.
Options look like an affordable route for those looking to benefit from the security's next moves. This is per the stock's Schaeffer's Volatility Index (SVI) of 33%, which sits in the 9th percentile of its annual range. This means options traders are pricing in low volatility expectations.
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