Oil name Cheniere Energy (LNG) is 0.8% lower to trade at $227.58 this afternoon, suffering a steep drop on the back of dismal natural gas performance. The sector has reportedly seen a smaller-than-expected decline in output and gas flows, while inventories came in above estimates. In response, natural gas prices were down around 2%.
LNG recovered from a pullback to $190 in April, but is once again struggling this week. The equity is eyeing a fifth-straight daily drop, though it has now moved within one standard deviation of the historically bullish 50-day moving average.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, LNG has been within striking distance of this trendline five other times in the past three years. Following 80% of those signals, the stock was higher within five trading days, averaging a 2.4% pop. A comparable move from LNG’s current perch would put it near $233 by this time next week.
Options are looking affordable, too. This is per the equity’s Schaeffer’s Volatility Index (SVI) of 29% that ranks in the 20th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.
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