Cheniere Energy had a sharp decline from $41.84 to 95 cents (A-B) and then settled into a trading range between $1.80 and $5.35 and then in a higher range between $5 and $12.75 (dashed lines). This price action produced a bullish Duplex Horizontal pattern. Cheniere pierced above this range recently to signal a breakout and the start of a new up-leg (C). Although a minor pullback toward about $12 may occur, only a decline below about $10 would reverse the current long-term upside potential.
Point & Figure measurements provide targets of $17 and $19. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. Ron Meisels is a contributor to the www.NA-marketletter.com website. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.comReport Typo/Error
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