Equinox Gold Corp (NYSEARCA:EQX) Emerges as a Minervini-Style Growth and Momentum Leader

In growth investing, joining a solid technical plan with strict fundamental study can be a strong method for finding possible market leaders. One method is supported by well-known trader Mark Minervini. His SEPA (Specific Entry Point Analysis) plan uses a filter to find stocks with clear upward moves, quickening fundamentals, and exact entry points. This method aims to take stocks near the start of their large price gains. A real use of this idea includes looking for securities that fit Minervini's strict Trend Template for technical soundness and also show the fast earnings and sales growth seen in high-momentum investments.

Equinox Gold Corp (NYSEARCA:EQX) appears as a present option that fits this two-part screen, deserving more study from growth-focused investors.

A Clear Technical Trend

The main part of the Minervini plan is the Trend Template, a group of fixed technical rules made to confirm a stock is in a clear, strong upward move (Stage 2). This removes doubt and directs money to assets where the easiest direction is clearly upward. Equinox Gold’s chart makes a strong argument, meeting all the important points for a standard Minervini arrangement.

• Moving Average Arrangement: The stock’s price form shows the preferred arrangement of main moving averages, a signal of united buying pressure across different periods.
  • The present price ($14.56) trades well above the rising 50-day ($13.56), 150-day ($10.22), and 200-day ($9.32) simple moving averages.
  • The 50-day SMA is above both the 150-day and 200-day SMAs.
  • The 150-day SMA is above the 200-day SMA, confirming the long-term trend’s soundness.
• Nearness to Highs: Minervini’s idea chooses strength over looking for low prices. EQX is trading within 4% of its 52-week high of $15.16, showing it is being bought and does not face much selling pressure above. Also, it sits 161% above its 52-week low, proof of a continued recovery trend.
• Better Relative Strength: Maybe most significant is the stock’s relative strength (RS) ranking of 96.13. This means EQX has done better than about 96% of all stocks in the market over the last year. In Minervini’s system, high relative strength is not a signal of being "overbought" but a main sign of market leadership and institutional interest.

This technical view is further supported by ChartMill’s own analysis, which gives EQX a complete Technical Rating of 10 out of 10, confirming very good technical health.

The Support for Momentum: Strong-Growth Fundamentals

While a good chart is necessary, Minervini states that the largest winners are nearly always backed by strong fundamental speed. The "High Growth Momentum" part of the screen looks for companies showing sharp gains in profitability and sales, the sort of results that draw institutional money and cause new valuations. Equinox Gold’s recent financial numbers show this fast growth pattern.

• Earnings Jump: The company has moved clearly into profitability. Earnings Per Share (EPS) for the last twelve months is $0.39, showing a very large 680% year-over-year gain. Recent three-month comparisons are more striking, with the last reported quarter showing EPS growth of 111% compared to the same quarter a year before.
• Strong Sales Growth: Revenue growth gives the base for lasting earnings. Revenue has risen quickly, with year-over-year growth of 39% and the last quarter showing a notable 91% gain in sales. This shows the company is not only reducing costs but is truly growing its operations and market position.
• Analyst Outlook: The market’s future view is also good. Analyst guesses for next year’s earnings have been raised by over 28% in the last three months, showing increasing belief in the company’s future profitability, a main Minervini point to watch.

This pairing of breakout technicals and fundamental speed makes the "specific entry point" situation Minervini looks for: a fundamentally sound company moving out of a formed price pattern within a major upward trend.

Technical Arrangement and Risk Measures

Beyond the trend, the Minervini plan puts high importance on entry points with defined risk, often after a period of lower price movement. ChartMill’s technical report states that EQX shows a good setup pattern with a Setup Rating of 8. The stock has been moving in a narrow range between $13.32 and $15.16 over the last month, letting moving averages move closer and price movement calm.

The report finds a clear resistance area just above the present price, near $14.82 to $14.91. A clear move above this level could act as a possible entry signal, with a proposed stop-loss placed below the nearby support area starting at $14.45. This sets a clear and controlled risk measure, a fixed rule of careful trading.

For a full look at the support, resistance, and trade setup, you can see the complete ChartMill Technical Analysis Report for EQX.

An Option for the Growth-Focused Watchlist

Equinox Gold Corp shows the sort of security a joined Minervini and high-growth momentum screen tries to find. It shows the signs of a market leader: a strong, layered upward trend confirmed by moving averages, very good relative strength, and nearness to new highs. Fundamentally, it is supported by a story of fast earnings growth and strong sales growth, giving the reason for continued institutional attention.

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Want to find more stocks that meet this strict growth and momentum standard? You can use the same "High Growth Momentum + Trend Template" screen yourself to see the present market view. Click here to use the screen and see more results.

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Disclaimer: This article is for information and learning only. It is not meant as investment advice, a suggestion, or an offer to buy or sell any security. The study uses present data and methods, which may change. Investing in stocks has risk, including the possible loss of money. Always do your own study and think about talking with a qualified financial advisor before making any investment choices. Past results do not show future outcomes.