Oil Stock Could Head Back Toward Highs

Oil name EQT Corp (EQT) pulled back after its recent Nov. 3 one-year high of $45.23, though support at the $39 level captured the dip. Plus, this price action put EQT into contact a historically bullish signal.

According to Schaeffer’s Senior Quantitative Analyst Rocky White, EQT stock is within one standard deviation of both its 320-day moving average for the sixth time in the past three years. The stock was higher one month later 80% of the time after these signals, averaging a 10.5% return.

It’s also worth noting that short interest represents 6.8% of the equity’s available float. It would take shorts five days to cover their bets, at EQT’s average pace of trading.

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