Equinor Plummets 3.18% Amid Volatile Intraday Action: What's Fueling the Selloff?

Summary
• Equinor (EQNR) trades at $23.77, down 3.18% from its $24.55 previous close
• RSI hits 71.06, signaling overbought conditions amid a 52-week range of $21.41–$28.27
• Put options on $23.84 and $22.84 strikes dominate turnover, with 109 and 14 contracts traded respectively

Equinor’s intraday selloff has captured market attention as the stock trades near its 52-week low. With technical indicators flashing mixed signals and options activity surging on the put side, traders are scrambling to decipher whether this is a short-term correction or a deeper bearish shift. The Renewable Energy sector remains in flux, with sector leader Nextera Energy (NEE) down 0.59% as cross-sector jitters persist.

Technical Overbought Conditions Trigger Profit-Taking
Equinor’s 3.18% intraday decline stems from a classic technical correction as the RSI (71.06) entered overbought territory, prompting algorithmic and discretionary traders to lock in gains. The stock’s price action—trading between $23.76 and $24.18—confirms a breakdown from its 200-day moving average ($24.35) and Bollinger Bands’ upper boundary ($24.01). While no company-specific news triggered the move, the MACD histogram’s positive divergence (0.192) against a negative signal line (-0.086) suggests weakening bullish momentum, amplifying short-term bearish bias.

Renewable Energy Sector Mixed as NEE Leads with -0.59% Move
The Renewable Energy sector remains fragmented, with sector leader Nextera Energy (NEE) down 0.59% despite Equinor’s sharper decline. While NEE’s selloff reflects broader energy sector jitters, Equinor’s move appears more technical in nature, driven by overbought conditions rather than sector-specific catalysts. The lack of direct correlation underscores the importance of monitoring individual technical setups in a divergent market environment.

Bearish Options and ETFs Emerge as Strategic Plays
• 200-day average: $24.35 (below current price) • RSI: 71.06 (overbought) • Bollinger Bands: $22.17–$24.01 (price near lower band)

Key levels to watch include the 200-day support ($23.01) and 30-day support ($22.97). Short-term bearish bias is reinforced by the RSI’s overbought reading and the MACD’s bearish crossover. While no leveraged ETFs are available for Equinor, the options chain offers high-leverage bearish exposure. Two top options:

• EQNR20260116P23.84 (Put, $23.84 strike, Jan 16 expiry):
- IV: 17.82% (moderate)
- Leverage Ratio: 52.46% (high)
- Delta: -0.623 (sensitive to price drops)
- Theta: -0.047 (moderate time decay)
- Gamma: 0.496 (high sensitivity to price swings)
- Turnover: $5,341 (liquid)
- Payoff (5% downside): $0.06/share (max gain if price falls below $23.84)
This contract offers aggressive bearish exposure with high leverage and liquidity, ideal for short-term volatility.

• EQNR20260116P22.84 (Put, $22.84 strike, Jan 16 expiry):
- IV: 25.13% (moderate)
- Leverage Ratio: 157.38% (very high)
- Delta: -0.233 (moderate sensitivity)
- Theta: -0.027 (moderate decay)
- Gamma: 0.284 (high responsiveness)
- Turnover: $204 (liquid)
- Payoff (5% downside): $1.06/share (profit if price drops below $22.84)
This option balances leverage and strike price, offering outsized returns if the selloff accelerates.

Aggressive bears should prioritize EQNR20260116P23.84 into a breakdown below $23.84.

Backtest Equinor Stock Performance
The backtest of EQNR's performance after a -3% intraday plunge from 2022 to now shows mixed results. The 3-day win rate is 49.21%, the 10-day win rate is 48.41%, and the 30-day win rate is 45.77%. While the stock has had positive returns over some short periods, the overall performance has been lackluster, with the maximum return being only 0.41% over 30 days.

Key Levels and Sector Cues to Watch for Immediate Reversal or Deeper Selloff
Equinor’s selloff appears technical in nature, driven by overbought conditions and a breakdown from key moving averages. While the 200-day support ($23.01) and 30-day support ($22.97) offer near-term floors, a close below $23.09 (middle Bollinger Band) could trigger deeper bearish momentum. Sector leader Nextera Energy’s -0.59% move suggests broader energy sector fragility, but Equinor’s move remains distinct. Watch for a breakdown below $23.09 or a reversal above $24.18 to gauge the move’s sustainability.