Equatorial Resources Soars 4.64% Amid Bullish Technicals and Volatile Options Activity

Summary
• Equatorial Resources (EQX) surges 4.64% to $14.755, trading near 52-week high of $15.10
• Intraday range expands from $14.40 to $14.935, signaling strong short-term momentum
• Options volume spikes with 1159 contracts traded on the EQX20260116C15 call option
• RSI hovers at 51.0, MACD crosses above signal line, and Bollinger Bands show price near upper band

Equatorial Resources is experiencing a sharp intraday rally, driven by a confluence of technical indicators and options market activity. The stock’s 4.64% gain has pushed it within striking distance of its 52-week high, with key technical levels aligning to suggest potential continuation. Traders are closely watching the options chain for clues on positioning, as high-liquidity contracts like the January 16, 2026 $15 call option show elevated turnover and implied volatility.

Bullish Momentum Gains Traction on Technical Convergence
Equatorial Resources’ 4.64% intraday surge is fueled by a short-term bullish trend confirmed by multiple technical indicators. The RSI (50.99) is approaching overbought territory, while the MACD (0.468) crossed above its signal line (0.557), indicating strengthening upward momentum. Bollinger Bands show the price at 15.075, near the upper band, suggesting a potential breakout. The 200-day moving average (8.67) is far below current levels, highlighting a long-term bullish divergence. This confluence of indicators suggests traders are capitalizing on a short-term rally, with options activity amplifying speculative positioning.

Steel Sector Gains Steam as Nucor Leads 2.57% Rally
The steel sector is showing renewed strength, with Nucor (NUE) leading the charge with a 2.57% intraday gain. This outperformance aligns with Equatorial Resources’ rally, as both stocks benefit from improving demand for raw materials and infrastructure spending. While Nucor’s industrial scale and diversified operations provide a different risk profile, the sector-wide technical momentum suggests a broader trend of optimism in steel markets.

Options and ETF Plays for a Volatile Rally
• 200-day MA: 8.67 (far below) • RSI: 51.0 (approaching overbought) • MACD: 0.468 (above signal line) • Bollinger Upper: 15.08 (near) • Gamma: 0.192 (high sensitivity) • Theta: -0.026 (moderate decay)

Equatorial Resources is in a high-momentum phase, with technicals suggesting a potential test of the 52-week high. Key levels to watch include the 15.08 upper Bollinger Band and the 15.10 52-week high. Short-term bulls should consider the EQX20260116C15 call option (strike $15, expiration Jan 16, 2026) and EQX20260220C15 (strike $15, Feb 20, 2026).

EQX20260116C15: • IV: 52.91% (high volatility) • Leverage: 20.18% (moderate) • Delta: 0.486 (moderate sensitivity) • Theta: -0.026 (moderate decay) • Gamma: 0.192 (high sensitivity) • Turnover: $81,304 (high liquidity). This contract offers a 55.32% price change potential with strong gamma and moderate leverage, ideal for a short-term breakout.
EQX20260220C15: • IV: 58.04% (high volatility) • Leverage: 11.16% (moderate) • Delta: 0.529 (moderate sensitivity) • Theta: -0.016 (moderate decay) • Gamma: 0.114 (high sensitivity) • Turnover: $12,597 (high liquidity). This option provides extended exposure with higher gamma and IV, suitable for a mid-term rally.

Payoff estimates under a 5% upside (to $15.50) show the EQX20260116C15 could yield a 55.32% return, while the EQX20260220C15 offers 36.84%. Aggressive bulls should target the Jan 16 call for a quick move above $15.10, while the Feb 20 contract offers a safer play for a sustained rally.

Backtest Equatorial Resources Stock Performance
Equinox Gold (NYSE: EQX) has experienced a total of 66 days with intraday surges of 5% or more from 2022 to the present. The backtest reveals a mixed short-to-medium-term performance following these events:1. Immediate Pullback: The median next-day return was -2.1%, and the win rate was 35%, indicating that half of the time, the stock experienced a decline after a strong intraday performance.2. Sideways Movement: The cumulative median return remained below zero through the end of the first week, suggesting that the initial positive momentum did not translate into sustained gains.3. Momentum Emergence: By day 10, momentum started to build, and by day 22, the cumulative excess return turned significantly positive, with a peak median gain of approximately +12% on day 26.4. Optimal Holding Period: The optimal holding period after a surge is approximately 2-4 weeks, beyond which gains faded. This suggests that while there is potential for positive returns following a 5% intraday surge, holding the stock for extended periods beyond the initial week or two may not yield further benefits.

Position for a Breakout or Reversal: Key Levels to Watch
Equatorial Resources’ 4.64% rally is supported by strong technicals and options positioning, but sustainability depends on breaking above $15.10. Traders should monitor the 15.08 Bollinger Band and 15.10 52-week high as critical resistance levels. Nucor’s 2.57% gain in the steel sector adds context to the broader market optimism. If EQX holds above $14.40 (intraday low), the rally could extend toward $15.50. Aggressive bulls may consider the EQX20260116C15 call option for a short-term breakout, while the EQX20260220C15 offers a balanced play for a mid-term rally.