LNG Cheniere Energy Bullish Intraday Reversal Candle

by Olivier on December 6, 2010

Another post where I’ll stick to making a few comments on each of my portfolio positions. As far as weekend reading posts are concerned, I will try my best to post them every now and then as opposed to sticking to a rigid weekly schedule. On to the charts:

  • LNG – Cheniere Energy: Nice intraday reversal candle. The long tail indicates buying pressure and good support in the 5 – 5.50 price area. Keep in mind to view support as an area as opposed to viewing it as a specific price. As bullish as the chart might look, we need follow through to confirm the bullish bias. The stock displayed more weakness than I had expected. Then again, if LNG can move up soon and close in the 5.75 – 6.00 price area, today most likely will turn out to be the day lots of weak hands were shaken out of their positions. We are not there yet. But so far everything looks very promising. Especially so looking at the weekly chart. Once the weekly chart generates a white candle a whole new set of buyers will emerge and enter the stock. These will be the so called “other time frame market participants”. The best price moves are triggered when buyers with different goals and time frames come together and join forces.
  • DNN DML.TO – Denison Mines: The stock closed at the very high of the day and all day long displayed way more strength than I would have expected. DNN is “exceeding my expectations” which is typically very bullish technical action. DNN definitely wants to go higher. It looks like the stock will probably hit 4$ much sooner than I thought.
  • UEX.TO – UEX Corp.: Still trading within its bullish ascending formation. A close above 2.40 $ would have been nice. It looks like it might need more time before it can break out to the upside. The stock tends to move well when the whole sector moves, so if the rest of the pack moves up UEX.TO most likely will follow suit.
  • TMB.TO – Tembec: More or less the same trading behaviour as UEX.TO. Both are building bullish ascending bases. Overall TMB.TO looks a bit stronger than UEX.TO.
  • CNL.TO – Continental Gold: Very strong stock. This is exactly the kind of behaviour strong stocks display. They put in strong moves to the upside and then consolidate in a very orderly fashion barely giving back any gains. I see CNL.TO moving to at least 15$ over the next 6-12 months. If that kind of price target is good enough for you and if it fits your trading style, then by all means hold on to your CNL.TO shares.

Success is going from failure to failure without losing enthusiasm. – Winston Churchill

My public list with all my charts can be viewed here:

Buenas noches!

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