Thursday night on Mad Money Jim Cramer in his "Executive Decision" segment, sat down with Charif Souki, co-founder and chairman of Tellurian Inc. (TELL) . TELL is one of our nation's newest liquified natural gas exporters. Cramer felt that Souki was the father of the LNG export business in America with his first company, Cheniere Energy (LNG) , and now aims to repeat that performance with Tellurian. That's all well and good but let's check the charts and indicators before committing.
In the daily bar chart of TELL, below, we find few technical positives. Prices have a downward slope the past 12 months but the higher low in August could be a shift in direction. Prices are below the declining 200-day moving average line but recently closed above the declining 50-day moving average line.
The daily On-Balance-Volume (OBV) line has been in a downtrend the past year and tells us that sellers of TELL have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the upside in July for a cover shorts buy signal. An outright go long signal awaits a close above the zero line for this indicator.
In the weekly bar chart of TELL, below, we can see that prices made a spike high in early 2017. Prices are below the declining 40-week moving average line. The weekly OBV line shows a decline for most of this year and the MACD oscillator is below the zero line on this longer time frame.
In this Point and Figure chart of TELL, below, we can see a very bearish downside price target of $1.50. A rally above $12.00 is needed to turn this chart bullish.
Bottom-line strategy: TELL may be a wonderful company but right now the chart of the stock is bearish. When the indicators improve I am interested at looking at TELL again.