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Where Cheniere Energy Could Trade in the Next 7 Days

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Jan. 22 2018, Updated 12:25 p.m. ET

Cheniere Energy’s implied volatility

Cheniere Energy’s (LNG) 30-day implied volatility was 27.9% on January 18, 2018, which is slightly higher than its 15-day average of 27.8%. By comparison, peers Kinder Morgan (KMI) and Energy Transfer Equity (ETE) have implied volatilities of 21.5% and 30.6%, respectively.

The Alerian MLP ETF (AMLP) has an implied volatility of 21.3%. Cheniere Energy’s higher implied volatility compared to AMLP could be attributed the volatility in LNG (liquefied natural gas) prices. Any fluctuation in LNG prices impact earnings of Cheniere Marketing.

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Cheniere Energy’s price forecast

Cheniere Energy is expected to trade in the range of $53.18–$57.44 during the next seven days, based on its closing price of $55.28 on January 18.

Cheniere Energy is expected to trade within this range with a 68.0% probability. This assumes a standard deviation of one and a normal distribution of prices.

In the next part of this seres, we’ll analyze Cheniere Energy’s current valuations.

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