Cheniere Is Squeezing. Is a Breakout Next?

Natural gas tanker stock Cheniere Energy has steadily trended higher for more than a year, but it’s effectively gone nowhere for three months. Now it may be getting ready to move again.

The first pattern on today’s chart is the descending trendline that started earlier this month. Next, consider how prices are trying to hold the same $127.75 area where they bounced on April 25 and May 12. The convergence of the falling trendline with horizontal support is creating a triangle with breakout potential.

Given its longer-term uptrend and macro environment (Europe trying to ween off Russian oil), some investors may expect a resolution upward.

Next, stochastics have dipped to the most oversold condition since July.

Finally, the 100-day simple moving average (SMA) offered support last August, September and January. It’s now approaching again from below. Will that help nudge LNG higher?

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