Here’s a idea from our Active Trading Forum: $LNG – February 1, 2022
LNG XLE OIH XOP LGNC
This is Scott with your Chart of the Day. I want to take a look at an idea that was shared in our Active Trading Forum by one of our active members. I think this is a pretty good idea that was shared today in the forum, it is ticker LNG ( NYSEAMERICAN: LNG ).
Now, as you may have seen energy stocks have been popping. We will take a look at XLE ( NYSEARCA: XLE ) hitting new highs. OIH ( NYSEARCA: OIH ), close to recent highs. XOP ( NYSEARCA: XOP ) is also close to recent highs. These energy stocks are really setting up nice and I think are definitely an area you should either be involved in or be paying attention to.
Here’s what I like about this chart pattern. We have a nice long base of consolidation, months and months of basically sideways chop. We had a little bit of a breakout, a fake-out, and a retest of this move with a strong slingshot back to the highs. What I want to see from LNG ( NYSEAMERICAN: LNG ) is a strong move above this breakdown zone. You can see that we just tested it here today. We have a clearly defined level of resistance that we need the stock to push through, on volume, to confirm higher prices.
I think it makes sense to have an alert on LNG ( NYSEAMERICAN: LNG ) right around that 115.75 level. You will want to see a strong push on volume and you will want to see it hold above that daily 8-exponential period moving average. If it closes below that daily 8-DMA I would probably want to close the trade out. But this is what I am looking for, a strong move through 115.75 on LNG ( NYSEAMERICAN: LNG ), so add it to your watch list.
Free Chart