For his final "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer spoke with Charif Souki, chairman and cofounder of Tellurian (TELL) , the authority on liquified natural gas (LNG) and the state of energy around the globe. Shares of Tellurian were up another 6.25% Wednesday as the company announced construction has begun on its first LNG export terminal.
Souki added that Tellurian doesn't need the government's assistance to bring up to 120 million tons of natural gas export capabilities online, as they're already permitted to do so. The demand and economics support their business model, he said, and it's principally labor and other shortages that will be slowing them down.
"Russia got everything wrong," when they invaded Ukraine, Souki said. Russia could have been one of the largest economies in the world, he said, but instead, they sent themselves back into the dark ages.
Let's check out the charts of TELL again. We did not find them convincing back on September 15.
In this daily bar chart of TELL, below, we can see that prices have made a couple up and down swings over the past 12 months. Active traders may have liked the price swings but less active traders or investors may have had other thoughts. Prices have rallied from late February on increasing volume. The slope of the 50-day moving average is now positive and the 200-day moving average line has a bullish slope too.
The On-Balance-Volume (OBV) line has moved higher the past year which I find pretty amazing considering the up and down moves of the stock price. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line but has narrowed in recent days.
In this weekly Japanese candlestick chart of TELL, below, we can see that TELL made a bottom pattern around $1. Prices have made higher lows and higher highs from late 2020. TELL is trading above the rising 40-week moving average line.
The weekly OBV line shows us a positive trend. The MACD oscillator has crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of TELL, below, we can see an $8.75 price target.
In this weekly Point and Figure chart of TELL, below, we used a five box reversal filter. Here the software suggests a price target in the $12-$13 area.
Bottom line strategy: The charts and indicators above suggest that TELL can trade higher in the months ahead. The problem, in my opinion, is the volatility - a fancy word for deep corrections. Traders who are experienced with wide-swinging stocks could go long TELL around $5 but they need to risk to $3.40. $8.75 is our first price target.