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Do Cheniere Energy’s Indicators Hint at a Further Price Rise?

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Cheniere Energy’s moving averages

Cheniere Energy (LNG) continues to trade above its both short-term (50-day) and long-term (200-day) moving averages. This trend indicates bullish sentiment in the stock. Cheniere Energy was trading 10.9% above its 50-day SMA (simple moving average) and 22.6% above its 200-day SMA as of May 10.

Strong recent quarterly earnings, increased 2018 guidance, positive updates on Train 3 at Corpus Christi, and strong global LNG prices might continue to drive positive sentiment in Cheniere Energy’s stock. On the other hand, a rise in the US Treasury yield and weakness in US equity markets could push Cheniere Energy below its 50-day moving average. However, the positives look more supportive of the company.

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Short interest in Cheniere Energy

Short interest in Cheniere Energy was 11.2 million shares as of May 10. At the same time, short interest in Cheniere Energy as a percentage of its float ratio was 4.67%. The current short interest in LNG is higher than the 30-day average of 5.43%. However, short interest in LNG is significantly lower than the one-year and three-year averages of 6.17% and 7.85%, respectively.

A decline in short interest with an increase in the stock price indicates that the market expects Cheniere Energy’s stock price to rise, which indicates bullish sentiment in the stock.

In the next part of this series, we’ll look into Cheniere Energy’s seven-day price forecast.

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