Equifax, Inc. (EFX) closed at $188.18 after a sharp drop. This move comes after the stock broke a multi-year uptrend on the daily chart.
Starting in late 2023, the share price climbed along a rising trendline for almost two years. It reached highs a little above $309 by mid-2024, and the trendline held up the price on several pullbacks.
After the breakdown, that same trendline is now above the stock and may act as resistance. The fall from just over $309 to $188.18 is about 39%.
The price now sits between that overhead trendline and a support level at $159.93. The move from $188.18 down to $159.93 is about $28, or close to 15%.
For a recovery, EFX would likely need to move back above the rising trendline. If it cannot break above that level, a decline toward $159.93 is still possible.
Trading choices may come down to whether the stock retakes the trendline or breaks below $159.93. Volume and momentum are important to watch during any pause or further selloff.
With Equifax breaking its multi-year uptrend, the stock looks fragile at $188.18. For derivative traders, the near-term focus is clear: strong resistance overhead from the old trendline, and key support near $159.93. Over the next few weeks, the market may force a decision between betting on more downside or trying to buy a rebound after a steep selloff.
The bearish view is supported by recent economic data showing rising consumer stress. U.S. credit card balances reportedly climbed above $1.1 trillion by the end of last year. Serious auto-loan delinquencies have also risen to levels not seen since the mid-2000s. If consumers pull back, Equifax could see weaker demand for credit inquiries and data products, which makes a test of $159.93 look more likely.
For traders expecting more downside, buying put options with March or April expirations and strikes like $175 or $170 is one direct way to trade the move. Another approach is selling call credit spreads with short strikes above the broken trendline, possibly around $200. This strategy can profit if EFX stays below resistance, helped by time decay and any further decline.
On the other side, traders who think the 39% drop is too large may see a chance for a rebound. Selling cash-secured puts with a $160 strike is a more conservative bullish idea. It collects premium now and only requires buying the stock if it falls to that major support level, which can act as a lower entry point.
A more aggressive bullish idea is buying call options, but implied volatility is likely higher after a sharp selloff, which can make calls expensive. In similar drops during 2024 and 2025, buying calls right after a plunge often required very good timing because premiums were elevated. A call debit spread may be a better fit, since it reduces upfront cost and caps risk if the stock does not bounce quickly.
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