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Where Cheniere Energy Stock Might Go from Here


Aug. 27 2018, Updated 1:15 p.m. ET

Moving averages

Cheniere Energy (LNG) stock continues to look strong. Recently, it broke above its 50-day moving average level. It’s currently trading 2% and 12% above its 50-day and 200-day moving averages, respectively.

The stock’s premiums to both its support levels indicate its strength. These levels of ~$63.66 and $57.92 could act as supports for Cheniere Energy stock in the short term. It’s currently trading at $65.11.

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Relative strength index

Cheniere Energy’s RSI (relative strength index) currently seems stable at 54. RSI is a momentum indicator that takes values from 0 to 100. A stock is considered “oversold” when its RSI score falls below 30 and “overbought” when it rises above 70. An extreme RSI value can imply an impending reversal in a stock’s direction.

Short interest

Short interest in LNG stock fell 11% on August 15. On July 31, total shorted shares in LNG were 9.5 million. They fell to 8.5 million on August 15. A decrease in short interest could mean that fewer investors expect the stock to fall from its current price level. A company’s short interest reflects the number of its shares that have been sold short and not yet squared off. Short interest measures investor anxiety.

Cheniere Energy has a weight of ~7.3% in the Global X MLP and Energy Infrastructure ETF (MLPX). Cheniere Energy Partners (CQP) makes up ~1.4% of the Alerian MLP ETF (AMLP).


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