Equillium (EQ) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - Equillium, Inc. (EQ) has experienced a significant decline of 52.2% in its stock price over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick suggesting that the stock found support after hitting a new low during a downtrend [4][5]. - This pattern signals that bears may have lost control, and the success of bulls in preventing further price declines indicates a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for EQ, with the consensus EPS estimate for the current year increasing by 11.2% over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - EQ holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9]. This rank serves as a strong indicator of improving company prospects and potential trend reversal [9].