Sky Quarry (SKYQ) Surges 36% Intraday – What’s Fueling This Volcanic Move?

Summary
• Sky Quarry (SKYQ) rockets 36.33% intraday to $0.3047, defying a 52-week low of $0.2075
• Intraday range spans $0.2216 to $0.3397, signaling sharp rebound from oversold territory
• RSI plummets to 5.25, MACD (-0.0372) and negative histogram (-0.0088) hint at divergent momentum

Today’s 36% surge in Sky Quarry has ignited fervent speculation among traders. The stock’s meteoric rise from its intraday low to near 40% above the previous close suggests a technical rebound amid extreme oversold conditions. With RSI at 5.25 and price hovering near Bollinger Bands’ lower boundary, the move appears driven by algorithmic buying or short-covering rather than fundamental catalysts.

Technical Rebound Ignites Sky Quarry’s Intraday Surge
The 36.33% intraday jump in SKYQ is primarily attributable to extreme oversold conditions flagged by an RSI of 5.25, the lowest level in over a year. Price action shows a sharp rebound from the Bollinger Bands lower boundary ($0.2173) and a breakdown of the negative MACD histogram (-0.0088), suggesting short-term momentum reversal. The stock’s 0.3047 price point is 45% above its 30-day moving average (0.3313), indicating algorithmic buying pressure exploiting the 52-week low of $0.2075. No company-specific news or sector-driven factors are currently influencing this move.

Technical Setup and ETF Implications for Sky Quarry’s Volatility
• 200-day average: 0.5684 (far above current price), RSI: 5.25 (extreme oversold)
• Bollinger Bands: Price at $0.3047 (vs. lower band $0.2173), 30D MA at 0.3313 (resistance)
• MACD: -0.0372 (bearish), Histogram: -0.0088 (contracting divergence)

The technical setup suggests a short-term reversal trade. Key levels to monitor include the 30D MA (0.3313) as immediate resistance and the 200D MA (0.5684) as a long-term benchmark. With RSI at 5.25 and price near Bollinger Bands’ lower boundary, aggressive bulls may consider a long position if SKYQ breaks above 0.3313. However, the absence of leveraged ETFs and a barren options chain limit leveraged exposure. The negative MACD histogram contraction implies momentum may stabilize, but the 52-week low ($0.2075) remains a critical support level.

Backtest Sky Quarry Stock Performance
The backtest of SKYQ's performance after a 36% intraday increase from 2022 to now shows mixed results. While the stock experienced a maximum return of -0.45% during the backtest period, with a maximum return day on January 2, 2026, the overall trend was negative, with returns of -2.96% over 3 days and -4.11% over 10 days. The 30-day return was -5.13%, indicating that the stock largely underperformed following the intraday surge.

Act Now: Sky Quarry’s Volatility Presents High-Risk, High-Reward Setup
Sky Quarry’s 36% intraday surge is a textbook technical rebound from extreme oversold conditions, but sustainability hinges on breaking above the 30D MA (0.3313). Traders should prioritize monitoring the RSI (5.25) and MACD histogram (-0.0088) for confirmation of momentum stabilization. While the Renewable Energy sector leader Nextera (NEE) rose 0.82%, its muted performance underscores that this move is SKYQ-specific. Immediate action: Watch for a breakout above 0.3313 or a breakdown below 0.2216 (intraday low).