LNG Shipping Sector versus ETF SPY
World LNG shipping sector continues rising, while the main US market represented by ETF SPY declines. The gap between these two indices is closing despite both moving very differently.
UP World LNG Shipping Index is close to the previous double top formation. First peak was formed in the beginning of June, the second in the middle of August. This week UP index should try to break over this price level.
It might succeed as the NG and LNG prices are rising in hand with rising shipping spot rates. Some stocks of LNG shipping companies have already reacted to this positive news. Companies like Golar LNG Ltd., Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK) went up followed by industry leader Qatar Gas Transport Company Ltd. (Nakilat).
On the other hand the doble top is a strong pattern in technical analysis and sellers will wait at these price levels.
UP World LNG Shipping Index is a rules-based stock index family designed to show and measure the performance of world publicly traded companies involved in maritime transport of liquefied natural gas (LNG). This world unique index covers 17 companies and partnerships from countries all over the world like the USA, Qatar, Japan, Norway, South Korea or Malaysia. The index covers 65 % of the world LNG carrier fleet.