In our April 15 review of natural gas plays we recommended a long position in EQT Corp. (EQT) . After the close of trading Tuesday the company announced they were purchasing Appalachia assets for $5.2 billion in cash and shares and would double their stock buyback program. Let's check the longer-term trends of the stock.
In the daily bar chart of EQT, below, we can see that the shares rallied strongly from mid-April to early June followed by a correction down into early July. Another strong move higher carried prices to a new high in late August. Prices are trading above the rising 50-day moving average line and above the rising 200-day line.
Trading volume has weakened slightly since late March. The daily On-Balance-Volume (OBV) line shows a peak in late May followed by a soft decline. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but pointed down.