The idea is that EQT shares are going to retest recent highs as the oil crisis isn't over. I have some fundamental evidence for it to happen:
1. US oil companies under pressure as there is lack of demand. Recent decades where the booming time in oil production. So there are many medium oil companies. They were investing in expansion. However, the expansion is not the right strategy for crisis times. It means these companies have put massive cash into equipment recently. So they don't have much cash but plenty illiquid equipment.
2. From the start of great V-shape recovery oil enthusiasts have been making bet on global efforts to resolve current overwhelming oil supply. It was good till yesterday when Tramp created one more wave of US-China Trade War. I believe that OPEC+ news already priced in as many medium-cap oil companies jumped 200-300% from the middle of March.
So what about EQT? It is one of the biggest natural gas producers in US. It sees great opportunities for expansion and gas prices rise in few quarters.
Why? Because historical data shows that dump commodities always win in this hard period: Wheat, rice, gas, etc.
So if u believe in second grand wave of sales this is good opportunity to make some money with relatively low risk. But this upward trend is not gonna last long, so if you are long-term investor it is not your pick.
Please do not hesitate to share your opinion. I wanna hear as much comments as possible. As a beginner it is pleasure to hear fitbacks from local gurus.
Cheers!
1. US oil companies under pressure as there is lack of demand. Recent decades where the booming time in oil production. So there are many medium oil companies. They were investing in expansion. However, the expansion is not the right strategy for crisis times. It means these companies have put massive cash into equipment recently. So they don't have much cash but plenty illiquid equipment.
2. From the start of great V-shape recovery oil enthusiasts have been making bet on global efforts to resolve current overwhelming oil supply. It was good till yesterday when Tramp created one more wave of US-China Trade War. I believe that OPEC+ news already priced in as many medium-cap oil companies jumped 200-300% from the middle of March.
So what about EQT? It is one of the biggest natural gas producers in US. It sees great opportunities for expansion and gas prices rise in few quarters.
Why? Because historical data shows that dump commodities always win in this hard period: Wheat, rice, gas, etc.
So if u believe in second grand wave of sales this is good opportunity to make some money with relatively low risk. But this upward trend is not gonna last long, so if you are long-term investor it is not your pick.
Please do not hesitate to share your opinion. I wanna hear as much comments as possible. As a beginner it is pleasure to hear fitbacks from local gurus.
Cheers!
Comment:
I sold 13.05 after hitting 13.2
Sry for not being accurate
Sry for not being accurate
13.2
13.05
12.85