Equinor Surges 2.9% on Legal Victory and Strategic Contracts—What’s Fueling the Momentum?

Summary
• Equinor (EQNR) surges 2.93% intraday to $25.425, breaking above its 52-week high of $28.265
• U.S. court approves wind project resumption, reversing Trump-era restrictions
• Norwegian supplier contracts worth NOK10B annually announced
• Bank of America reiterates Buy rating with NOK260 target, while UBS maintains Sell

Equinor’s sharp intraday rally on January 16, 2026, reflects a confluence of legal clarity and strategic expansion. The stock’s 2.93% gain—its strongest intraday move since late 2024—follows a U.S. court ruling allowing its Empire Wind project to proceed and the announcement of a $10 billion Norwegian supplier agreement. With technical indicators flashing bullish momentum and options activity heating up, the question is whether this surge marks a breakout or a short-lived spike.

Legal Green Light and Norwegian Contracts Drive EQNR Rally
Equinor’s intraday surge stems from two pivotal developments. First, a U.S. District Court lifted a Trump-era ban on its Empire Wind project off New York, enabling the company to resume construction on its $3.5 billion offshore wind farm. This ruling removes regulatory uncertainty and aligns with the Biden administration’s clean energy agenda. Second, Equinor announced a 5-year, $10 billion framework agreement with Norwegian suppliers for onshore and offshore maintenance, signaling long-term operational stability. These catalysts, combined with Bank of America’s upgraded Buy rating (NOK260 target) and UBS’s conflicting Sell stance (NOK205 target), created a volatile trading environment. The stock’s 2.93% gain reflects optimism about its dual exposure to fossil fuels and renewables.

Energy Sector Gains Momentum as EQNR Outperforms XOM
While the broader energy sector saw mixed performance, Equinor’s 2.93% gain dwarfed Exxon Mobil’s (XOM) 0.28% rise. The disparity highlights Equinor’s unique positioning at the intersection of traditional energy and renewables. XOM’s muted move reflects its focus on oil and gas, whereas EQNR’s wind project and Norwegian contracts position it to benefit from both energy transition tailwinds and stable hydrocarbon demand. The energy sector’s 0.5% intraday gain, driven by higher oil prices and geopolitical tensions, provided a backdrop but did not directly explain EQNR’s outperformance.

Options Playbook: Leverage EQNR’s Bullish Momentum with Gamma-Driven Calls
• MACD: 0.330 (above signal line 0.168), RSI: 63.62 (approaching overbought)
• 200D MA: $24.27 (below current price), Bollinger Bands: Price at $25.43 (near upper band)
• Support/Resistance: 30D support at $23.02, 200D resistance at $23.13

Equinor’s technicals suggest a continuation of its bullish momentum. The stock is trading above its 200-day moving average and within a short-term uptrend, with RSI nearing overbought territory. The MACD histogram’s positive divergence indicates strengthening upward momentum. For options traders, the EQNR20260220C26 and EQNR20260220C25 contracts stand out:

• EQNR20260220C26
- Type: Call, Strike: $26, Expiry: 2026-02-20
- IV: 26.10% (moderate), Delta: 0.4166 (moderate sensitivity), Theta: -0.0228 (strong time decay), Gamma: 0.1877 (high sensitivity to price moves), Turnover: 1,305
- Payoff at 5% upside (ST = $26.70): $70/share, 26.5% return on $26 strike
- This contract balances leverage and liquidity, ideal for capitalizing on a potential $26.70 target.

• EQNR20260220C25
- Type: Call, Strike: $25, Expiry: 2026-02-20
- IV: 27.52% (moderate), Delta: 0.6020 (high sensitivity), Theta: -0.0281 (strong time decay), Gamma: 0.1760 (high sensitivity), Turnover: 1,517
- Payoff at 5% upside (ST = $26.70): $170/share, 68% return on $25 strike
- A high-gamma, high-delta play for aggressive bulls betting on a $26.70 breakout.

Action Alert: Aggressive bulls should target the $25.50 resistance level with the C25 call, while conservative traders may use the C26 contract for a safer, gamma-driven position. Watch for a breakdown below $25.18 (intraday low) to trigger a reversal.

Backtest Equinor Stock Performance
Equinor's (EQNR) stock performance following a 3% intraday surge in 2022 shows a mixed trajectory with varying degrees of success across different quarters and time periods:1. Q1 2022 Performance: After a strong first quarter with earnings per share (EPS) of $1.60, surpassing the consensus estimate of $1.57, Equinor's stock gained nearly 3%. This outperformance was fueled by higher commodity prices and increased production from the Martin Linge oil field.2. Q2 2022 Performance: Equinor's stock continued to rally, gaining almost 4% after reporting adjusted EPS of $1.56, exceeding the consensus of $1.44. The company's average daily production of liquids and gas rose by 7% year-over-year to 1,343 thousand barrels of oil equivalent per day (MBoe/d), driven by the Martin Linge oil field's contribution.3. Q3 2022 Performance: Following a 2.7% increase in the stock price after reporting Q3 earnings, Equinor's stock benefited from a dividend hike, which likely boosted investor confidence. The company's adjusted EPS for the quarter was $2.12, surpassing the consensus estimate of $1.78, and total quarterly revenues increased to $43,633 million from $23,264 million in the prior-year quarter.4. Post-Surge Performance: From the time of the 3% intraday surge in 2022 until now, Equinor's stock has experienced fluctuations. The most recent data shows a continued focus on capital returns, with an increased share buy-back program and higher dividends. However, the stock's performance has been influenced by broader market dynamics and energy sector trends rather than concrete fundamental developments.In conclusion, Equinor's stock has shown positive momentum following the 3% intraday surge in 2022, with several quarters exhibiting strong earnings and positive investor reactions to dividend hikes and share buybacks. Nevertheless, the stock's performance since then has been subject to market and sector trends, highlighting the need for sustained operational and strategic advancements to maintain investor confidence and long-term stock performance.

EQNR’s Bull Run Gains Legs—Should You Ride the Wave?
Equinor’s 2.93% intraday surge is underpinned by regulatory clarity, strategic contracts, and a bullish technical setup. The stock’s proximity to its 52-week high and strong options activity suggest a potential breakout. While the energy sector’s 0.5% gain provides a supportive backdrop, EQNR’s outperformance over XOM’s 0.28% rise underscores its unique catalysts. Traders should monitor the $25.50 resistance level and the $25.18 support zone. For a sector play, XOM’s 0.28% rise offers a safer alternative, but EQNR’s momentum and options liquidity make it a compelling short-term trade. Act now: Buy the EQNR20260220C25 call if $25.50 breaks, or short the C26 call if the $25.18 level fails.