I was watching CNBC this morning and I caught a short interview with Daniel Yergin, the energy expert and vice chairman of IHS Markit. I met Dan a number of times in the 1990's when we both worked for companies controlled by Clayton Dubilier and Rice. Dan said that the United States was going to be one of the top exporters of natural gas so naturally I was curious about the charts of Cheniere Energy, Inc. (LNG) .
In this daily bar chart of LNG, below, we can see a strong rally from August. The rally has been interrupted along the way with only shallow corrections which tells us that buyers of LNG do not wait to put more money to work in this stock.
Prices are above the rising 50-day and the bullish 200-day moving average lines. The volume histogram right below the price chart is hard to interpret but the daily On-Balance-Volume (OBV) line shows a steady rise the past 12 months. A rising OBV line is bullish as it shows that buyers of LNG have been more aggressive with heavier volume being traded on days when the stock has closed higher.
The Moving Average Convergence Divergence (MACD) oscillator looks poised to turn up again for a fresh outright go long signal.
In this weekly chart of LNG, below, we went back five years to show the last high for this stock. Prices are above the rising 40-week moving average line. There is some potential resistance in the $75-$85 area from 2014-2015 but that was three to four years ago and it may not provide much actual resistance as those longs may have exited their positions.
The weekly OBV line is strong and has been going up since early 2016. The weekly MACD oscillator is bullish.
In this long-term Point and Figure chart of LNG, below, we can see a tentative long-term price target of near $100.
Bottom line: The charts and indicators of LNG are bullish. Stay long, go long or add to longs. Risk below $60 looking for $100 over the months ahead.