I can’t see a gap at $0.22 on the daily chart, but there’s...

I can’t see a gap at $0.22 on the daily chart, but there’s definitely one at $0.171.

My view is that once the SP went south of $0.22-0.20 it became fairly obvious to most technical traders that the gap at $0.125 would fill, and this exacerbated the down trend.

Technical traders view gap theory as pretty reliable. With technical analysis it’s all about prioritisation of signals. So a gap only becomes more relevant when some other signals are pointing to it as well.

There are some gaps above $1, above $2 and above $3 on the LNGL chart, however, their relevance is very small at this stage.

The gap at $0.171 is very relevant right now and other indicators are saying that it will fill in the very near term.

The filling of that gap will create other indicators. Those create other indicators again. Until at a certain point in the future the gaps above $1, $2 and $3 do become more relevant.

Shares are little bit like dominos. Reversals are a little bit like turning a ship around (Speed 2 reference). Little bit like the ocean, tide goes out tide comes in. To expect the tide to stay out is foolish. To expect it to remain high tide is equally foolish.

Right now LNGL tide has gone all the way out and is beginning to come back in. Same with the gas price.

PS. For me the most relevant gap on the daily is actually at $1.195, which I believe will fill if:

(1) LNGL selects a strategic financing option that is pleasing to shareholders

(2) trade tariffs are lifted and

(3) there are harsh winters for 2020.

If we have all of the above AND SPAs for 8.8 mtpa then expect gaps between $2-3 to fill very quickly.



Just my opinion and not advice