The EQT Corporation (NYSE: EQT) is a leading natural gas production company with operations across the United States. The company has a strong track record of generating significant returns for its shareholders through its efficient operations and commitment to responsible resource development.
EQT faced its longest bear market, lasting almost six years (69 months), following its peak in 2014. We observed that this bearish trend unfolded in an Elliott wave corrective structure, which we identified in our article back in 2019. Based on our analysis, we anticipated that the stock would reach a major bottom below $8 and subsequently experience a larger three-wave bounce in the future.
EQT 2019 weekly chart
Moving forward to the present time, EQT has experienced a massive rally, increasing more than 1000% in just two years. The rally unfolded in an impulsive five-wave structure, reaching its peak wave (I) at 51.97. Currently, a wave (II) is in progress as a three-wave zigzag structure, with the stock reaching the equal legs area of 29.85 – 20.49 as presented on the next chart.
The blue boxes in our charts are the High-frequency areas where the Markets are likely to end cycles and make a turn. Therefore that area will provide significant support for EQT, as buyers and investors are expected to take positions and prepare for the next weekly move.
However, it’s worth noting that a break above the September 2022 peak is necessary to confirm this bullish trend. Without such a break, there is still a possibility for the stock to undergo a seven-swings correction lower before eventually making new highs.
For the stock to initiate a weekly bullish sequence that could break into new all-time highs, the first step is a move above the 2022 peak. If this occurs, we can look for targets of $75 – $100 on a monthly or yearly basis.
EQT Elliott Wave weekly chart 2023
In conclusion, the natural gas industry has experienced favorable market conditions and global events recently, providing an excellent opportunity for companies like EQT to thrive both fundamentally and technically.