Cheniere Energy ($LNG): On the move again…

 

LNG has break its previous high within a 2 day rally. Seems like it is on the move again.

I am expecting a small retrace first to serve its price-action.

On the Ichimoku Chart, support is around 10.4 followed by 9.5

Note:

DOE Conditionally Approves Cheniere’s LNG Export Application for Non-FTA Countries

Cheniere Energy (LNG): Trend continues


I have a long position on LNG since I sold off the previous time.

This is based on the fact that the price has consolidated.

Both the Tenkan sen and Kijun sen are now very close to each other which will strengthen the support going forward.

Also, a closer look at the Tenkan sen suggest that it is ready to move upwards soon. Couple this with the slightly upward sloping leading kumo.

My guess, LNG may be ready to hit new high soon.

Cheniere Energy, Inc. (LNG) : Taking profit. Stop-loss.

It was only pre-market open that I touch on LNG having a strong momentum.

And how things turn around very fast this morning.

In this case, we can see on the Ichimoku Daily Chart that LNG price has run up a lot in a very short timeframe.

One of the key habits that I learn from the hard way is to always be prepared to take money off the table once you have a good run up.

How do I know that there is a good run up?

Whenever the price move away from the Tenkan sen. That is a sign to me.

In LNG, price is at $8.2 yesterday close and Tenkan sen is around 7.50 region.

I am not keen to see it drop so much (to $7.50) before I take my profit.

So, in this case, I uses the 1min chart to monitor for sudden downward movement.

Below is a 1min Ichimoku chart that I use for my entries and exit during execution.


In my case, I already know that the price has run up a lot.

So, my job is to define the support level on the 1min chart.

And if it fell below my stop-loss (or take profit level in this case), I will just exit.

For LNG, I just use $8 as my exit point. There is no maths or science in it.

It is just a round figure (or a mental stop) that I use.

The moment, it move below, I was out (a bit slower than I wish). My final exit price is $7.82

I have no idea if it will bounce back to this level (or even higher) over the next few days. But, I would want to look for some consolidation before taking a position in LNG again.

For now, there exists some risk. Should LNG be succesful in getting approval for their expansion to build more terminals, they will have to raise funds somewhere. And I won’t be surprised that selling more shares could be one option.

Reminder to self. Always be ready to take profit. If there is a good run up, take profit off the table.