LNG breaks below 100-day moving average for the first time since June 17th
Cheniere Energy Inc. (LNG) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LNG ended Wednesday at 66.14 tanking $1.60 (-2.36%), notably underperforming the S&P 500 (-0.65%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on May 13th, LNG actually gained 2.24% on the following trading day. Today's close at 66.14 marks the lowest recorded closing price since June 17th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (LNG as at Jul 17, 2019):
Wednesday's trading range has been $1.74 (2.58%), that's far above the last trading month's daily average range of $1.08. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LNG.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 100-day moving average at 66.71 for the first time since June 17th.
Crossing below the lower Bollinger Band for the first time since May 28th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 68.48 or signal the beginning of a strong momentum breakout leading to even lower prices.
Although Cheniere Energy is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cheniere Energy. Out of 65 times, LNG closed higher 56.92% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 67.69% with an average market move of 4.47%.