Bullish Outlook For Liquefied Natural Gas Ltd
FNArena News - January 17 2017
The S&P/ASX 200 Index has eased back over the last week as predicted, but there is still some life in the small and mid-cap space. US markets were closed overnight and with Trump being inaugurated on the 20th, it is likely to be a quiet week. One of our recent trades in Sandfire Resources (SFR) is now showing signs of making the next step higher, and we also identify another trading idea with Liquified Natural Gas Ltd (LNG) breaking out and looking very bullish.
Most of 2016 was a base building exercise for LNG, except for a brief spike up in June. It now looks like the stock is on the move again, with it on the cusp of breaking out of this year-long base. It looked like it was building up towards a move during the last few weeks, finally breaking out of an ascending triangle last Thursday. It then followed through with a big move up last Friday on volume. It is now finding some resistance here just above 80c, but it looks it poised to retest the high 90c levels again. If it can crack that, then we expect it to make a move towards $1.20. Traders are advised to trail a stop with LNG to see how far it can go.