LNG Benefits from US-China Liquefied Natural Gas Export Discussions

Yesterday' s late word that the US Government and China have agreed to expand Liquefied Natural Gas exports has goosed Cheniere Energy, Inc. (LNG) about 4% today.

According to both Reuters and Bloomberg, an LNG spokesperson said that "the company sees long-term contract talks accelerating, and has had extensive negotiations with Chinese entities."

If there is one place on the planet that LNG would like to expand into, China certainly is on the top of the list.

From a technical perspective, let's notice this morning's up-gap... breakaway up-gap... opening, followed by a thrust that has hurdled both the Jan-May resistance line at 48.72, and the prior rally high at 49.20 (April 12)-- and is sustaining the gains as we speak, which bodes well for upside continuation towards a challenge the Jan 26 rally peak at 50.65.

My intermediate-term pattern and cycle work indicate that LNG is positioned to climb sharply out of a 4-month digestion-correction period, in route to a 57.00-59.00 target in the weeks/months ahead.

We remain long in our MPTrader Model Portfolio at 46.75 from May 5.