EQT Energy Slumps 3.41% Amid Technical Breakdown Below Key Support

EQT Energy (EQT) closed at $52.19 in its latest session, declining 3.41% on notably above-average volume, signaling heightened selling pressure as the stock failed to sustain levels above key near-term resistance.
Candlestick Theory
Recent candlesticks reveal a bearish technical structure. The failure to hold above $54.03 after a 3.98% rally (2025-07-24) formed a rejection candle, followed by a decisive breakdown below $52.37 support. The long red candle on 2025-07-21 (-9.55%) established major resistance near $58.00. Current price action shows consolidation beneath the $54.00 psychological barrier, with immediate support forming near $51.70 (2025-07-25 low). A sustained break below $51.26 could accelerate selling.
Moving Average Theory
The 50-day and 100-day moving averages show bearish alignment, with the shorter average crossing below the longer one in mid-July – a classic death cross signaling intermediate-term weakness. EQT currently trades below both the 50-day (~$55.30) and 100-day (~$56.80) averages, affirming near-term bearish momentum. The 200-day moving average (~$51.50) provides critical long-term support; a decisive close beneath this level would signal a potential primary trend reversal.
MACD & KDJ Indicators
MACD remains entrenched in negative territory below its signal line, with histogram bars extending downward – confirming sustained bearish momentum. KDJ shows an oversold rebound attempt (K: 28, D: 35, J: 14) but with weak upward traction, suggesting any bounce lacks conviction. The recent negative divergence between KDJ recovery attempts and lower price highs since mid-July indicates fading upward momentum.
Bollinger Bands
Volatility expansion occurred during the July sell-off, with price breaking below the lower Bollinger Band. The subsequent consolidation has kept price near the lower band ($51.60), reflecting persistent selling pressure. Bandwidth remains elevated, suggesting continued volatility risk. Failure to reclaim the middle band ($54.20) maintains the bearish bias.
Volume-Price Relationship
Distribution patterns dominate recent action. The breakdown below $54 on 2025-07-23 occurred on the highest volume (24.4M shares) in the dataset, validating capitulation. Subsequent selling days (e.g., 2025-07-25: 8.47M shares) featured higher volume than rebound attempts, confirming weak demand. This volume profile suggests rallies remain vulnerable to supply influx.
Relative Strength Index (RSI)
Daily RSI (38) is approaching oversold territory but lacks bullish divergence. Notably, recent rallies failed to push RSI above 50 – the bullish threshold – indicating weak momentum during recovery attempts. While not yet oversold (<30), the inability to regain neutral ground signals persistent selling pressure. Historical reactions near RSI 30 (early April, late June) warrant monitoring for potential stabilization, though oversold conditions can persist in strong downtrends.
Fibonacci Retracement
Applying Fibonacci levels to the upswing from $46.11 (2025-04-04 low) to $60.80 (2025-06-20 high) yields critical thresholds:
- 38.2% retracement: $54.60 (recent resistance)
- 50% retracement: $53.45
- 61.8% retracement: $52.30 (active support)
- 78.6% retracement: $50.50
Price recently defended the 61.8% level ($52.30). A sustained breach opens the path toward the 78.6% retracement near $50.50, aligning with the 200-day MA support. Confluence exists between the $51.50-$52.30 Fibonacci/MA zone and the $51.26 July low.
Confluence and Divergence Summary
Confluence around $54.00-$55.00 is evident through multiple lenses: resistance from candlestick rejection (07-24), the 38.2% Fib level, the 100-day MA, and the Bollinger midline. Below current price, significant confluence exists at $51.26-$52.30, combining the recent swing low, the 61.8% Fib level, and the rising 200-day MA. A major divergence exists between weakening momentum oscillators (MACD, RSI) and the price holding above key long-term moving averages. This suggests either the MA support holds (potentially triggering a technical rebound) or a breakdown occurs (indicating trend acceleration). Traders should monitor the reaction near $51.50-$52.30 for directional cues, with volume confirmation critical for either continuation or reversal scenarios.