Why Is Sky Quarry Stock Surging Monday?

Sky Quarry Inc (NASDAQ:SKYQ) shares are soaring Monday morning. The move follows a massive momentum wave that began last week. Trading resumed Friday after a circuit breaker halt saw the stock jump over 85%.

Geopolitical Tensions Drive Energy Interest

The primary catalyst stems from escalating Middle East tensions. President Donald Trump recently announced a blockade of the Strait of Hormuz. Trump expressed frustration with Iran on Truth Social.

Nasdaq futures are down 0.61% while S&P 500 futures have shed 0.58%.

Oil Prices Surpass Key Thresholds

Global energy supply concerns sent Brent crude prices past $100 per barrel. Crude oil futures rose over 8% early Monday to $104.55.

Mohamed El-Erian, Allianz's chief economic adviser, warned of rising costs. He noted the blockade increases burdens for countries importing Middle Eastern crude.

Nevada Refinery Gains Strategic Spotlight

Investors are also focusing on Sky Quarry's Foreland Refinery in Nevada. Tight regional fuel capacity has increased the facility’s strategic value.

The company previously discussed boosting output with local producers. This domestic focus appeals to traders amid the global energy supply crunch.

Technical Analysis

At $17.87, the stock is trading 332.7% above its 20-day simple moving average (SMA), the stock's average price over the last 20 sessions, which suggests the short-term trend is extremely stretched. It's also trading 469.1% above its 100-day SMA.

The relative strength index (RSI), a momentum gauge, is 88.25. RSI first entered overbought levels on Thursday.

• Key Resistance: $18.00
• Key Support: $17.50

SKYQ Price Action: Sky Quarry shares were up 40.79% at $17.73 during Monday's premarket session, according to Benzinga Pro data.

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