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What Cheniere’s Indicators Suggest ahead of Its 1Q18 Results

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Cheniere Energy’s moving averages

Cheniere Energy (LNG) recently crossed above its short-term 50-day moving average, indicating bullish sentiments in the stock. Cheniere Energy was trading 6.8% and 18.0% above its 50-day simple moving average and its 200-day simple moving average, respectively, on April 26, 2018.

At the same time, Cheniere’s peers Dominion Energy Midstream Partners (DM) and Kinder Morgan (KMI) were trading 46.2% and 9.7% below their long-term moving averages, respectively.

A positive earnings surprise, positive updates on Train 3 at Corpus Christi, and an increase in demand from power utilities and industrial customers could continue to drive positive sentiments in Cheniere Energy stock.

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Short interest in Cheniere Energy

Short interest in Cheniere Energy is 13.7 million shares as of April 26. The company’s short interest as a percentage of its float ratio has fallen to 5.8% compared to its 30-day average of 6.0%. Moreover, short interest in Cheniere Energy is lower than its trailing-one-year average of 6.2%. A fall in short interest means a fall in open short positions.

A fall in Cheniere Energy’s short interest despite strong recent gains indicates that the market expects the upward momentum to continue ahead of company’s 1Q18 earnings.

In the next article, we’ll look into Cheniere Energy’s price forecast based on its implied volatility.

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