Equinor ASA (NYSE: EQNR) has rebounded from its March 2020 low to fresh all-time highs, following a long stretch of weakness that began after its peak near $6. The company remains a major offshore oil and gas producer while expanding into offshore wind, carbon capture and other low-carbon projects, positioning the stock as a more diversified energy exposure. The move higher is framed as part of a broader recovery in global energy markets, with technical analysis centred on Elliott Wave patterns.
On the weekly Elliott Wave view, a five-wave impulse completed Wave (I) before a three-wave correction ran from May 2008 to March 2020, a period of nearly 12 years that wiped out more than 80% of prior gains and finished Wave (II). The advance from March 2020 is labelled Wave (III), with Wave I of (III) followed by a 32-month double zigzag into April 2025 as Wave II of (III). Price is then described as rising in Wave ((1)) of III, with Fibonacci projections placing a Wave III target around $68–76; on the daily chart, Wave ((2)) corrected into $32.61–26.97 before the stock turned higher in Wave (1) of ((3)).
Strong Fundamentals and Resilient Performance
We are seeing Equinor (EQNR) display remarkable resilience this August, fueled by steady European gas demand and robust production averaging over 2 million barrels of oil equivalent per day. The company’s recent Q2 2026 financial results highlighted strong cash flows, supporting its ongoing multi-billion dollar share buyback program. This solid fundamental backing aligns perfectly with the long-term bullish technical setup we are tracking.
Options Strategies and Long-Term Breakout Potential
With EQNR recently breaking out to test new highs, we believe derivative traders should avoid chasing this immediate upward momentum. Instead, the smartest play in the coming weeks is to prepare for a healthy corrective pullback, which typical wave patterns suggest is just around the corner. We recommend utilizing options strategies, such as writing cash-secured puts or setting up bull put spreads, to establish entry points if the stock dips back toward the $30 to $32 support range.
Historically, energy sector breakouts after multi-year consolidation phases—much like Equinor’s recovery since its 2020 lows—tend to yield explosive gains in the subsequent third-wave expansions. If historical trends repeat, EQNR has the potential to target the $68 to $76 range over the longer term. Positioning ourselves with longer-dated call options (LEAPs) during the next market dip will allow us to capture this substantial upside while managing short-term risk.
