Thursday's word that the US Government and China have agreed to expand Liquefied Natural Gas exports has goosed Cheniere Energy (NYSE:LNG) about 4% on Friday.
According to both Reuters and Bloomberg, an LNG spokesperson said that "the company sees long-term contract talks accelerating, and has had extensive negotiations with Chinese entities."
If there is one place on the planet that LNG would like to expand, it's into China.
From a technical perspective, let's notice Friday morning's up-gap — breakaway up-gap opening — followed by a thrust that hurdled both the Jan.-May resistance line at 48.72 and the prior rally high at 49.20 (April 12) is sustaining the gains, which bodes well for upside continuation toward a challenge of the Jan. 26 rally peak at 50.65.
My intermediate-term pattern and cycle work indicate that LNG is positioned to climb sharply out of a 4-month digestion-correction period, en route to a 57-59 target in the weeks/months ahead.
We remain long in our MPTrader Model Portfolio at 46.75 from May 5.