LNG pushes through Thursday's high
Cheniere Energy Inc. (LNG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
LNG finished the week 11.12% higher at 45.86 after gaining $1.17 (2.62%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 45.86 marks the highest recorded closing price since April 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 45.66, the market confirmed its breakout through the prior session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (LNG as at May 22, 2020):
Friday's trading range has been $1.85 (4.17%), that's slightly below the last trading month's daily average range of $2.04. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LNG. Prices continued to consolidate within a tight trading range between 43.96 and 46.19 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 45.18 (now S1), which is likely to act as support going forward. The share found buyers again today around 44.01 for the third trading day in a row after having found demand at 43.96 in the previous session and at 44.14 two days ago. The last time this happened on May 6th, LNG gained 1.67% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 46.19 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 43.96 where further sell stops might get activated. Further buying could move prices higher should the market test April's close-by high at 48.67.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Cheniere Energy. Out of 476 times, LNG closed higher 51.89% 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 56.72% with an average market move of 2.19%.