Sky Quarry (SKYQ) Surges 22% on Unveiling of 7 MW Power Monetization Strategy – What’s Fueling the Frenzy?

Summary
• Sky Quarry issues RFP to commercialize 7 MW power generation assets at PR Spring facility
• Intraday price jumps 22.02% to $0.6123, hitting $0.6604 high
• Market reacts to potential $0.05/kWh utility-scale power and turbine scarcity in AI-driven energy demand

Today’s explosive move in Sky Quarry’s stock has electrified the electric utilities sector. The 22.02% surge, fueled by the company’s strategic pivot to monetize underutilized power generation assets, underscores a rare convergence of operational efficiency and market timing. With the PR Spring facility’s 7 MW turbines now positioned for commercial partnerships, investors are recalibrating their risk-reward calculus in a sector grappling with grid constraints and surging demand for dispatchable power.

7 MW Power Assets Spark Strategic Reassessment and Market Optimism
Sky Quarry’s 22.02% intraday rally stems from its announcement of a Request for Proposals (RFP) to commercialize 7 MW of power generation capacity at its PR Spring facility. The company’s turbines, capable of co-generative operation and delivering power at $0.05/kWh, now represent a tangible revenue stream amid a tightening turbine market driven by AI and high-performance computing demand. Reduced energy needs at PR Spring post-upgrades have freed capacity, aligning with regional transmission limitations in Utah’s Uinta Basin. This strategic pivot—leveraging existing infrastructure to meet urgent market needs—has redefined investor perception of the asset’s value, triggering a sharp re-rating.

Electric Utilities Sector Volatile Amid Grid Constraints and AI-Driven Demand
The electric utilities sector remains fragmented, with Sky Quarry’s 22.02% surge contrasting sharply against NextEra Energy’s (NEE) -0.456% intraday decline. Broader sector dynamics include Senate bills exempting large loads from FERC/DOE regulation, Meta’s nuclear power deals, and surging data center demand straining grid capacity. Sky Quarry’s localized power monetization strategy taps into a niche but critical demand for dispatchable energy in regions with transmission bottlenecks, diverging from macro trends of regulatory shifts and capital-intensive infrastructure spending.

Technical Bullishness and ETF Correlation Signal Aggressive Long Setup
• RSI: 60.24 (neutral to overbought)
• MACD: 0.0427 (bullish crossover), Signal Line: 0.0140, Histogram: 0.0286 (positive divergence)
• Bollinger Bands: Price at upper band ($0.6188), middle at $0.3668, lower at $0.1149
• 200D MA: $0.5620 (price above, bullish)
• Support/Resistance: 30D support at $0.3442–$0.3535, 200D resistance at $0.7997–$0.8145

SKYQ’s technicals paint a high-conviction short-term bullish case. The stock has pierced the upper Bollinger Band and sits above its 200-day moving average, suggesting momentum-driven buying. RSI at 60.24 indicates moderate strength, while the MACD histogram’s positive divergence reinforces upward momentum. Key levels to watch: a break above $0.7997 (200D resistance) could trigger a retest of the 52W high ($1.94), while a pullback to $0.3442 (30D support) offers a low-risk entry. The absence of leveraged ETFs complicates direct sector exposure, but the stock’s standalone technicals justify a long bias. Hook: Aggressive bulls may consider a breakout above $0.7997 as a green light for a scaled-up position.

Backtest Sky Quarry Stock Performance
The backtest of SKYQ's performance after a 22% intraday increase from 2022 to now reveals mixed results. While the stock experienced a maximum return of -0.45% during the backtest period, with a maximum return day on January 13, 2026, the overall trend was negative, with returns of -2.84% over 3 days and -4.03% over 10 days. The 30-day return was -5.19%, indicating that the stock largely underperformed following the intraday surge.

Sky Quarry’s Power Play: A High-Volatility Catalyst Awaits Confirmation
Sky Quarry’s 22.02% surge hinges on its ability to convert the PR Spring power assets into a revenue-generating partnership, a move that could redefine its valuation trajectory. The stock’s technicals and sector positioning suggest a continuation of the rally if the RFP attracts credible bidders, but volatility remains a double-edged sword. Investors should monitor the 200D MA ($0.5620) as a critical support level and the 52W high ($1.94) as a long-term aspirational target. Meanwhile, NextEra Energy’s -0.456% decline highlights sector-wide uncertainty, underscoring the need for selective exposure. Action: Watch for a sustained close above $0.7997 or a breakdown below $0.3442 to dictate next steps.