• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Bear Charts of the Day: Cheniere Energy Partners, Quidel

Bearish indicators abound with both stocks. But be patient.
By TIMOTHY COLLINS
Sep 23, 2015 | 11:38 AM EDT
Stocks quotes in this article: CQP, QDEL, OKS

Not everything is rallying today, and those are likely the best names to focus on if looking on the short side.

A few master limited partnerships (MLPs) have struggled recently and even though I just had one on the bull side this week, I'm looking at another for the bear side. I don't see them as mutually exclusive. A trader can be long Oneok Partners (OKS) while looking short on Cheniere Energy Partners (CQP). Cheniere is struggling to hold support in a bear flag set. A close under $26.65 and the stock will be set up to test $25 at the very least. We are currently mired in bearish indicators.

I will look at oversold names from time to time in hopes of identifying an attractive reversal candidate. Right now, however, I just don't see Cheniere as a solid candidate for that approach. Each push in underlying indicators, whether it be momentum, trend, volume or volatility, has been met with little price fanfare. About the best has been the moving average convergence divergence (MACD) bullish crossover, but only with a tight stop. I would look for that along with a close over the 10-day simple moving average (SMA) if I wanted to play a reversal. I don't see it right now.

If I'm long, then I would look for a hedge or just step aside until some strength presented itself.

Quidel (QDEL) doesn't look too weak in a green market, but this chart does have something to offer. I'm including it in the bear side for now, but the chart has a nice falling wedge getting very tight and can go either way. In other words, the stock can go down as a volatility play or a break play. Whether it breaks out or breaks down remains to be seen. I believe the approach for QDEL is to wait for the break and stay with it. Therefore, a close below $20 sets the stock up as a short, while a close over $20.50 sets it up as a long. I believe the downside offers more than the upside by a 3-to-2 ratio, but both are attractive.

So, why is Quidel on the bear side at the moment? Well, we have a force index recently pushing into the red, the stock is trading below both the 10-day and 50-day SMAs, the MACD is set up for a bearish crossover, and both the commodity channel index (CCI) and relative strength index (RSI) are in bearish territory. In simpler terms, there is nothing bullish about the secondary indicators. One could argue there are bullish divergences with higher lows in the CCI, RSI and Force. I wouldn't argue against it, but that's why the price pattern is so important.

Be patient and wait for the break. I could see a quick 5% to 7.5% on a breakout or breakdown within a few days after entry. That would be very attractive in the current environment.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Collins was long OKS.

TAGS: Investing | U.S. Equity

More from Investing

This Small Advertising-Tech Stock Could Offer a Big Opportunity

Bret Jensen
Aug 14, 2022 7:00 AM EDT

Let's check a covered-call play in PubMatic.

To Improve Your Trading and Investing, Spend More Time on Exit Points

James "Rev Shark" DePorre
Aug 13, 2022 10:00 AM EDT

For many investors, the best way to sell is to have a highly mechanical system that removes subjectivity.

Royal Investing: 3 High Yield Dividend Aristocrats

Bob Ciura
Aug 13, 2022 7:00 AM EDT

Here are the three highest yielding Dividend Aristocrats available right now.

Market Whips Up a Melt-up

James "Rev Shark" DePorre
Aug 12, 2022 4:21 PM EDT

This action is primarily caused by poor positioning, rather than a sudden improvement in fundamentals.

How Charged Up Is FuelCell?

Mark Sebastian
Aug 12, 2022 3:26 PM EDT

I see some energy here, at least for a trade.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:40 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • 01:44 PM EDT STEPHEN GUILFOYLE

    This Holding Lights Up With Strong Earnings

    Check out the latest from TheStreet's Stocks Under...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login