LNG shipping stocks: Head and Shoulders formation confirmed
The UP World LNG Shipping Index (UPI), the world’s only stock index focused on LNG shipping companies, lost 1.79% last week. U.S. stocks represented by the S&P 500 (SPX) index lost 0.69%.
The UP Index declined, and the formation of a pattern known in technical analysis as Head and Shoulders is now confirmed. The probability of a correction of the UP Index is big now. The support line at 125 points should stop this decline, but we think the correction will be smaller. The Head and Shoulders pattern is highlighted in a green circle on the chart below.
Last week was unusually calm; no constituent gained or lost in two digits, and most movements were below five percent. The biggest move was a decline of Exmar NV (BSE: EXM), which was 7.7%.
Excelerate Energy (NASDAQ: EE) was the winner of the biggest growth: it gained 4.1%. South Korea´s SM KLC (KRX: 005880) was in second place with a gain of 3.8%. GasLog Partners (NYSE: GLOP) grew by 1.9%.
Golar LNG (NASDAQ: GLNG) lost 5%, Dynagas LNG Partners (NYSE: DLNG) declined by 4.7%, and New Fortress Energy (NASDAQ: NFE) decreased by 4.5%.
As we wrote at the beginning of this article, a decline in the UP Index is now very probable. On the other hand, the LNG shipping sector remains strong as demand for LNG is still high. This is not a trend-changing moment yet.
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 the maritime transport of liquefied natural gas (LNG). This unique index covers 19 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers over 65% of the world’s LNG carrier fleet. UP Index is a premium service. We offer freemium (the basic chart of the UP Index and S&P 500 index) and trial access to all charts.