Entegris Surges 7.4% on Intraday Rally: What's Fueling the Momentum?

Summary
• Entegris (ENTG) rockets 7.4% to $90.5, piercing its 52-week high of $110.46
• Intraday range spans $85.79 to $90.525, with 1.01% turnover rate amplifying volatility
• Sector leader Applied Materials (AMAT) gains 5.0%, hinting at broader semiconductor equipment sector strength

Entegris’ explosive intraday rally has ignited market speculation, with the stock surging 7.4% to $90.5—a sharp reversal from its 52-week low of $60.75. The move coincides with a 5.0% surge in sector leader AMAT, suggesting thematic momentum in semiconductor equipment. With RSI at 22.8 and MACD below signal line, traders are dissecting whether this is a short-term rebound or a structural shift.

Oversold RSI and Short-Term Bearish Reversal Signal Rally
The 7.4% intraday surge in Entegris aligns with its technical profile: RSI at 22.8 (oversold territory) and a short-term bearish trend reversal pattern. The stock has been range-bound for months, with the 200-day MA at $83.33 acting as a floor. A breakout above the 30-day resistance of $86.75 and 200-day resistance of $91.38 has triggered algorithmic buying, particularly in the $87.5–$92.5 range where options liquidity is concentrated. The MACD histogram (-0.36) and bearish crossover suggest exhaustion in the prior downtrend, creating a catalyst for a short-term bounce.

Semiconductor Equipment Sector Gains Momentum as AMAT Leads
Entegris’ 7.4% gain outpaces sector leader AMAT’s 5.0% rally, indicating relative strength within the semiconductor equipment subsector. The sector’s 5.0% intraday move reflects broader optimism in capital expenditure for chip manufacturing, driven by AI infrastructure demand. However, Entegris’ technical setup—particularly its RSI divergence and Bollinger Band breakout—suggests it is decoupling from the sector’s mean-reversion pattern, positioning it as a potential outperformer in the near term.

Bullish Setup Confirmed: ETFs and Options to Capitalize on Breakout
• 200-day MA: $83.33 (below current price)
• RSI: 22.8 (oversold)
• MACD: 0.29 (below signal line 0.66)
• Bollinger Bands: $80.78 (lower) to $95.09 (upper)
• 30-day MA: $83.46 (broken)

Entegris is in a classic short-term reversal pattern, with RSI at oversold levels and a breakout above key moving averages. The 200-day MA at $83.33 now acts as a strong support, while the 52-week high of $110.46 remains a distant target. Options liquidity is concentrated in the $87.5–$92.5 strike range, with the 2026-01-16 expiration offering high leverage and gamma sensitivity.

Top Option 1: ENTG20260116C87.5
• Strike: $87.5 (Call)
• Expiration: 2026-01-16
• IV: 47.42% (moderate)
• Leverage Ratio: 18.24%
• Delta: 0.6436 (moderate sensitivity)
• Theta: -0.2371 (high time decay)
• Gamma: 0.0430 (high sensitivity to price moves)
• Turnover: 45,102 (high liquidity)
This call offers a 18.24% leverage ratio and high gamma, ideal for capitalizing on a continuation above $87.5. A 5% upside to $95 would yield a payoff of $7.5 per contract.

Top Option 2: ENTG20260116C92.5
• Strike: $92.5 (Call)
• Expiration: 2026-01-16
• IV: 42.74% (moderate)
• Leverage Ratio: 41.91%
• Delta: 0.4041 (moderate sensitivity)
• Theta: -0.1848 (high time decay)
• Gamma: 0.0496 (high sensitivity)
• Turnover: 430 (reasonable liquidity)
This contract’s 41.91% leverage ratio and high gamma make it a high-conviction play for a push toward $95. A 5% upside would yield a $2.5 payoff.

Action: Aggressive bulls may consider ENTG20260116C87.5 into a break above $87.5, while ENTG20260116C92.5 offers a high-leverage bet on a $95 target.

Backtest Entegris Stock Performance
Entegris (ENTG) experienced a significant intraday surge of approximately 7% on December 2, 2022. Let's analyze the stock's performance following this event:1. Short-Term Impact: - The 7% surge on December 2, 2022, was followed by a general uptrend in the stock price until the end of 2022. However, the peak price was not immediately established. - The stock price reached its highest point in the immediate post-surge period, but this was not an immediate response. Instead, it exhibited a gradual climb.2. Long-Term Performance: - 2023 Outlook: The stock's positive momentum carried into 2023, with a notable peak price recorded in the first few months. This aligns with the broader market's optimism, especially in technology and semiconductor sectors. - 2023 Performance: Throughout 2023, ENTG generally maintained a strong performance, with some fluctuations. The stock price experienced a few dips, but these were largely retraced or compensated by further gains.3. Key Factors Influencing Performance: - Earnings Reports: Positive earnings reports, such as the Q2 2022 results where revenue increased by 21% and GAAP diluted EPS rose by 12%, have bolstered the stock's performance. - Debt Offering: The subsidiary's debt offering in June 2022, which included financing for the CMC Materials merger, may have had a stabilizing effect on investor confidence. - Strategic Moves: The announcement to build a new manufacturing center of excellence in Colorado Springs, supported by state and local incentives and potential federal funding, has likely contributed to the stock's resilience.4. Market Sentiment: - Sector Growth: The semiconductor and biopharmaceutical sectors, in which ENTG operates, have seen significant growth, particularly in single-use assemblies, which has benefited ENTG's stock performance. - Investor Confidence: The company's strategic expansions and financial strength have maintained investor confidence, despite some market volatility.In conclusion, ENTG's performance after the 7% intraday surge on December 2, 2022, has been generally positive, with the stock reaching higher peak prices in the following months. This can be attributed to a combination of strong earnings, strategic financial moves, and favorable market conditions, particularly in the technology and healthcare sectors where the company operates.

Breakout Confirmed: Position for Next Leg Higher
Entegris’ 7.4% surge has validated a short-term bullish reversal, with RSI at oversold levels and a breakout above key moving averages. The 200-day MA at $83.33 now acts as a critical support, while the 52-week high of $110.46 remains a distant target. Sector leader AMAT’s 5.0% gain reinforces thematic momentum in semiconductor equipment. Traders should monitor the $91.38 200-day resistance and RSI for a potential overbought signal. Watch for a close above $91.38 or a RSI push above 50 to confirm the next leg higher.