During Monday's Mad Money program Jim Cramer took calls from viewers and responded that he remained a fan of Tellurian Inc. (TELL) . The story about TELL may be intact but I have a different opinion of the stock driven by the charts.
In the daily bar chart of TELL, below, we can see that prices have been in a downtrend from early April. Prices are below the sharply declining 50-day moving average line. The slope of the 200-day line is also negative.
The On-Balance-Volume (OBV) has been in a decline from early April and tells us that sellers of TELL have been more aggressive with heavier volume being traded on days when TELL has closed lower.
In the lower panel is the 12-day price momentum study which shows lower lows to match the price weakness. No bullish divergence yet to suggest a slowing in the pace of the decline.
In the weekly bar chart of TELL, below, we can see that prices have broken all reasonable support areas. Expecting support from an area back in 2016 is not realistic, in my opinion.
The weekly OBV line shows a decline all year and weakness the past three years. The weekly Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly close only Point and Figure chart of TELL, below, we can see a downtrend and a lower price target below $5.
Bottom-line strategy: I care more about the charts than the story line or the fundamentals. The charts are not giving me any reason to go long TELL.
