LNG finds buyers again around 54.62
Cheniere Energy Inc. (LNG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LNG finished the week -3.19% lower at 54.98 after edging higher $0.22 (0.4%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.41 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LNG as at Feb 14, 2020):
Friday's trading range has been $0.87 (1.58%), that's below the last trading month's daily average range of $1.45. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for LNG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 54.46 (S1). Prices are trading close to the key technical resistance level at 55.93 (R1). After having been unable to move lower than 54.47 in the previous session, the stock found buyers again around the same price level today at 54.62. The last time this happened on Tuesday, LNG gained 0.38% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 55.93 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 54.47 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cheniere Energy. Out of 231 times, LNG closed higher 51.95% 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 52.81% with an average market move of 2.44%.