Do Cheniere Energy’s Technical Indicators Hint at a Price Rise?
Cheniere Energy’s moving averages
Cheniere Energy’s (LNG) stock price fell below its 50-day moving average following a weak start to July 2017. It was trading 1.6% below its 50-day simple moving average and 5.7% above its 200-day simple moving average on July 13, 2017.
Cheniere Energy has remained above its 200-day moving average for the whole of 2017, which could indicate a bullish sentiment in the stock.
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Short interest in Cheniere Energy
Short interest in Cheniere Energy (LNG) was 12.8 million shares on July 13, 2017. At the same time, its short interest as a percentage of float ratio was 5.5%. Cheniere Energy’s current short interest is slightly higher than last month’s average of 5.3%. However, Cheniere’s short interest is still lower compared to its one-year and three-year averages of 6.7% and 8.1%, respectively, suggesting a bullish sentiment in the stock.
Cheniere Energy’s implied volatility
Cheniere Energy’s 30-day implied volatility was 28.8% on July 13, 2017. Cheniere Energy’s peers Kinder Morgan (KMI) and Energy Transfer Equity (ETE) had implied volatilities of 21.8% and 35.2%, respectively, on July 13. In comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 14.8%. Cheniere Energy’s high implied volatility could reflect the uncertainty in the global LNG (liquefied natural gas) market.
Cheniere Energy’s price forecast
Cheniere Energy could trade in the range of $45.52–$49.30 in the next seven days based on its July 13 closing price of $48.07 and assuming a normal distribution of prices. Cheniere Energy’s stock price is expected to be within this range 68.0% of the time.
Cheniere Energy’s relative strength index
Cheniere Energy’s RSI (relative strength index) was 52.3 on July 13. RSI is a momentum indicator with values ranging from 0 to 100. An RSI value of above 70 for a stock indicates that it has entered “overbought” territory, while an RSI of below 30 indicates that a stock has been “oversold.”
Cheniere Energy, which has been underperforming most of its peers and the energy sector in general in 2017, is far from being overbought.