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What Cheniere Energy’s Indicators Hint At ahead of 2Q17 Earnings

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Cheniere Energy’s moving averages

Cheniere Energy (LNG) recently went below its longer-term (200-day) moving average. That could indicate a bearish sentiment for the stock. It was trading 6.0% below its 50-day SMA (simple moving average) and 0.80% below its 200-day SMA as of August 3, 2017. Cheniere Energy’s peers Kinder Morgan (KMI) and Energy Transfer Equity (ETE) are trading 2.7% and 3.1% below their 200-day moving averages, respectively.

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Short interest in Cheniere Energy

Short interest in Cheniere Energy was 13.5 million shares as of August 3, 2017. At the same time, short interest in Cheniere Energy as a percentage of float ratio was ~5.8%. The current short interest in Cheniere Energy is slightly higher than last month’s average of ~5.7%. A rise in short interest reflects an increase in short positions that have not been closed. That might indicate a bearish sentiment in Cheniere Energy stock. However, short interest in Cheniere Energy is still lower than the one-year and three-year average of 6.5% and 8.1%, respectively.

Cheniere Energy’s relative strength index

Cheniere Energy’s RSI (relative strength index) was 28.2 as of August 3, 2017. It has entered “oversold” territory. RSI is a momentum indicator with values ranging from zero to 100. An RSI value below 30 for a stock indicates that it is “oversold,” while an RSI value above 70 indicates that it has entered an “overbought” zone. These extreme RSI levels for Cheniere Energy might result in a trend reversal.

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