Independent natural gas production company EQT Corp. (EQT), with operations focused in the Appalachian Basin, has steadily advanced up the relative strength tables within the SIA Russell 1000 Index Report. This rally is particularly evident when viewed alongside the Natural Gas point-and-figure (PNF) chart. Natural gas (NAT.GAS) has surged in 2024, with a peak-to-trough gain of 133%, positioning it as one of the top-performing commodities of the year. Turning first to the natural gas chart, after a steep decline in late 2022 from much higher levels, NAT.GAS bottomed at $1.66 on the PNF chart. Although several rallies occurred in 2023 and 2024, the commodity struggled to break through the $3 level with conviction. However, in late summer 2024, the price rallied to the red negative trendline, breaking through this resistance zone. This breakthrough marked a shift in technical strength and garnered increased attention. Despite persistent resistance at $3.58, it wasn’t until last week's 22% daily rally that the price exceeded these final resistance levels. Now, on a 3-box reversal in early January, NAT.GAS is exhibiting the strongest technical setup seen in years. The next resistance level is at $4.63, followed by a resistance band at $5.22-$5.43—levels that would likely excite natural gas producers. Its SMAX, a short-term measure of relative strength against other asset classes, is currently at 10.
Turning back to EQT’s chart, a similar sideways pattern from 2022 to the present is visible, with the share price unable to surpass $43.79 until December. At that point, the company gained favor within the SIA Russell 1000 Index Report. This previous resistance level now serves as support at $42.94, with further support at $38.13. On the resistance side, minor resistance levels remain at $47.00 and $49.32. A long-term version of the PNF chart reveals a significant resistance level dating back to 2014. This level, often overlooked by chartists, aligns with a vertical PNF count. Another important level, $61.32, was established by measuring the height of the prior consolidation range broken by the quadruple top. This represents a 17-box advance from the breakout level. Much like NAT.GAS, EQT shares boast a perfect SIA SMAX score of 10, indicating potential for near-term outperformance against all other asset classes.
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