EQT Stock Faces Historically Bearish Resistance

Shares of EQT Corporation (NYSE:EQT) recently rallied off familiar support at the $49 level and were last seen trading at $54.54. However, the recovery appears to be running out of steam at this level, which sits just below a trendline with historically bearish implications.

Per Schaeffer's Senior Quantitative Analyst Rocky White, EQT has traded within 0.75 times the 320-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions below the trendline. This setup has occurred five other times over the last decade, after which the stock was lower one month later every time, averaging a 3.8% loss. 

Analysts are overwhelmingly bullish on the equity, leaving plenty of room for a shift in sentiment. Of the 25 brokerages in coverage, 20 carry a "strong buy" rating, one a "buy," and four a tepid "hold." 

Plus, EQT typically underperforms in November. In fact, last year, the energy name entered the month at the top of Schaeffer's Senior Quantitative Analyst Rocky White list of worst S&P 500 Index (SPX) names to own in November.