Where Cheniere Energy Stock Might Go from Here



Moving averages

Cheniere Energy (LNG) stock continues to look strong. Currently, the stock is trading 7% and 15% above its 50-day and 200-day moving average levels. The premium to both of the support levels indicates strength. The moving average levels around $64.56 and $60.0 will likely act as a support in the short term. The stock closed at $68.93 on September 26.

LNG dma

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Relative strength index

Cheniere Energy stock seems to be on the verge of the “overbought” zone. The company’s RSI (relative strength index) stands at 70. The RSI is a momentum indicator that takes values from zero 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

The short interest in Cheniere Energy stock fell 5% on September 14. On August 31, the total shorted shares in Cheniere Energy were 9.7 million. The total shorted shares decreased to 9.2 million on September 14.

A decrease in the 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. The short interest measures investors’ anxiety.

Cheniere Energy’s subsidiary Cheniere Energy Partners (CQP) witnessed an even steeper rally this year. Currently, Cheniere Energy is trading 5% and 20% above its 50-day and 200-day moving averages, respectively. Cheniere Energy’s RSI is 70. The short interest decreased 16% on September 14.


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