For his second Executive Decision segment of "Mad Money" Tuesday, host Jim Cramer spoke with Charif Souki, chairman and co-founder of Tellurian Inc. (TELL) , a developer of liquefied natural gas projects.
Souki said the energy market is now global and the U.S. is now a full participant in that market when it comes to natural gas exportation. There is still a huge potential for the U.S.to become an even bigger player in the market, Souki added. It only needs the infrastructure to move natural gas from where it is produced to the coasts, where it can be exported, he said.
In our last review of TELL on March 24 we wrote, "At this point in time I cannot recommend the long side of TELL. I don't find the charts and indicators convincing enough."
Let's check on the charts again.
In this daily bar chart of TELL, below, we can see that prices have corrected lower since early June but have found some buying interest (support) around the rising 200-day moving average line. The On-Balance-Volume (OBV) line has been surprisingly steady since early June and suggests that prices fell of their own weight and that traders who are long have largely held those positions despite the decline from $5.50 to $2.50. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside in August for a cover shorts buy signal but still remains just below the zero line in outright sell territory.
In this weekly Japanese candlestick chart of TELL, below, we can see that prices suffered a huge decline in early 2020 but made a base again around $1.00. Prices have made two recovery rallies that both have been heavily retraced. TELL is testing the rising 40-week moving average line. The weekly OBV line shows gains in the past 12 months and the MACD oscillator is still slightly above the zero line and narrowing.
In this daily Point and Figure chart of TELL, below, we can see that prices reached an upside price target of $3.04.
In this weekly Point and Figure chart of TELL, below, we can see a price target of $3.60. This is positive but not all that encouraging, in my opinion.
Bottom line strategy: Can TELL make a third rally? Maybe. Traders who want to buy TELL could do so as long as they do not risk more than $2.50. A new low for the move down on TELL is likely to precipitate further declines. If you get a bounce to $3.60 I would take it and go.