Independent natural gas producer EQT Corp (EQT) looks poised to rally as natural gas futures have made lows in February and April. Let's check out the charts and indicators
In this daily bar chart of a daily futures continuation (linking together a number of contracts) chart, below, I can see that prices have bounced off the $2.00 level and now trade above the 50-day moving average line.
The On-Balance-Volume (OBV) line shows a rise from late March. The Moving Average Convergence Divergence (MACD) oscillator is now slightly above the zero line.
In this daily bar chart of EQT, below, I can see price improvement since a low in March. Prices have firmed above the bottoming 50-day moving average line. The 200-day moving average line still has a negative slope and intersects just below $38.
The daily On-Balance-Volume (OBV) line shows some strength from March. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
In this weekly Japanese candlestick chart of EQT, below, I can see some improvement. Prices have made a low in March and turned slightly higher. Prices are still below the 40-week moving average line but the OBV line has turned higher. The MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of EQT, below, I can see a base pattern and an upside price target in the $43 area.
In this weekly Point and Figure chart of EQT, below, I can see a $48 price target.
Bottom line strategy: Traders could go long EQT on a dip below $34. Risk to $30 for now. The $43-$48 area is my price target.
