Cheniere Energy Inc. declined from $82.32 to $22.80 (A-B) below its falling 40-week moving average (40wMA), rallied to ±$45 (C) and then stayed in a trading range mostly between $35 and $45 for about six months. This price action produced a bullish technical pattern known as a V-extended (dashed lines).
The recent rise above the top of this pattern signalled renewed investor interest, a breakout and the start of a new up-leg (D). Only a decline below $41 to 42 would be negative.
Point & Figure measurements provide targets of $59 and $64. The large V-extended formation (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com