LNG Update-Chart Request

LNG triggered on 12/30/2010 @ $5.89 making up to 29+% on the long. It's pulled back and we have some members still in and interested in the trade.

Here's what I see.

 Here's the daily, one thing I haven't been too happy about is MACD's position, but it's turned and has a chance to better that position. Volume today looks very strong. If we get a strong volume day combined with a strong close, there's a good chance we'll see follow through buying tomorrow.

 Here's the daily chart showing accumulation in something like an inverse Head and Shoulders base, there's been a lot of accumulation there, but the measuring implications of the original base have been fulfilled. The triangle acts as a consolidation pattern and is probably immune to black box system manipulation being it's a cheap stock under their radar so the next target is derived from the triangle. The most generous version of that measured move would put the target at $8.36. However if MACD and 3C continue to improve, that could be the next level before another consolidation within a trend. It's too early to judge that.

 Here's the hourly chart coming out of the triangle consolidation seen in the chart above. There's a positive divergence, then a negative that drove prices back down. There seems to be a healthy area of accumulation which led to today's move up.


 The 30 min. chart confirms what we saw on the 60 min., accumulation lasting 5-6 days so in my opinion it could be enough to reach that target, however it will depend greatly on how fast the shares are distributed, so we'll want to see good volume, but not excessively high. We'll also want to check the Volume at Price chart at the close. 3C on this chart so far is in confirmation of the move.


 The 10 min chart also shows a positive divergence right before today's lift-off and the move looks fairly confirmed.


 The 1 minute chart is confirming the move thus far, no sign of distribution yet, which is a good thing.

Using the most useful setting on the Trend Channel, you can see at the first white box how long the T.C has been able to hold this trend. The current stop on a trending basis is there just below $6 but it will have moved up pretty quick before that level is ever hit so I'm guessing a more accurate stop would be around $6.25 maybe a bit higher.

We'll continue to monitor the trade. If you have questions, please email me.