Big Picture Still Bullish for LNG

From a big-picture perspective, the overall pattern in Cheniere Energy, Inc. (LNG) since mid-2008 has taken the form of a rounded, saucer-type base.  This pattern for the past three months has been in the process of creating the "handle"portion of the pattern -- ahead of another very powerful upleg that should propel LNG towards 25.00-27.00.

That said, within "the handle," my near-term work argues that the most recent pullback low at 13.65 (July 12), which was followed by a key daily upside reversal spike to 16.00, must contain any forthcoming weakness in the aftermath of today's secondary offering to avert a much deeper pullback into the 12.80/40 area.

To the extent that LNG holds above 13.65, we will remain long in our site's model portfolio looking for a resumption of strength in the hours/days immediately after the secondary "supply" is absorbed.