This Low-Profile Gas Stock Could Be Setting Up for Another Run

[Trading With Larry Benedict]( This Low-Profile Gas Stock Could Be Setting Up for Another Run By Larry Benedict, editor, Trading With Larry Benedict Over the past month or so, I’ve been writing about oil… In February, we checked out [Exxon Mobil (XOM)](. And in March, we’ve looked at the [Energy Select Sector SPDR Fund (XLE)]( and [Chevron (CVX)](. This sector has fallen off many investors’ radars. But it has outperformed the tech-heavy Nasdaq index this year. Today, I want to visit another stock in this sector… Cheniere Energy (LNG). LNG is the U.S.’s largest producer and exporter of liquified natural gas (LNG). Its peak in November represented a massive 575% rally from its March 2020 low. After retracing from that high, though, let’s check if LNG is setting up to run again… A Changing Profile The last leg of LNG’s rally kicked off in early June 2023. By the time LNG topped out at its all-time high in November (‘A’), it had gained more than 6.5-fold in price since March 2020. Cheniere Energy (LNG) [chart] Source: e-Signal LNG’s rally coincided with two common bullish technical signals… - The Relative Strength Index (RSI) rebounded from oversold territory (lower grey dashed line) and broke back into the upper half of its range. That’s where it remained throughout the rest of LNG’s rally. - The 10-day Moving Average (MA, red line) crossed up over the 50-day MA (blue line), with both MAs then tracking higher. But this time, a reversal of that pattern saw LNG peak and reverse. In November, the RSI inverted from overbought territory (upper grey dashed line). It then fell through support (green line). It has remained bearishly in its lower band until recently. That action also caused the 10-day MA to cross below the 50-day MA, with both MAs then tracking lower. Then, coming into 2024, we saw a change in the RSI’s profile. Take another look: Cheniere Energy (LNG) [chart] Source: e-Signal Since mid-January, it has been trending higher, making higher lows (lower orange line). But up until recently, it has been unable to break through resistance. While the RSI rose, though, LNG has been falling, making lower highs and lower lows (upper orange line). We know that when price and RSI are converging like this, a reversal is often not far away… In fact, LNG rallied off its low earlier this month. And so far, that move is looking promising. So what should we look for next? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Acceleration Higher The RSI tried twice this year (and failed) to break up through resistance before finally succeeding. Now, it is tracking in its upper band (red circle). But right now, the RSI is still very close to support. For LNG’s emerging up move to develop into a full rally, the RSI needs to track higher and longer in its upper band. Additionally, this move has recently put the 10-day MA bullishly above the 50-day MA. Yet the two MAs are still tracking very closely together. So we’ll also need to see the 10-day MA accelerate higher and pull the 50-day MA higher with it. Regards, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](