Cheniere Energy Turns Red, Is this the Top?

Shares of Cheniere Energy (AMEX: LNG) are trading lower on the session by 0.08%, at $11.47. The stock has been trading well in the green all session, touching an intra-day high of $12.86 and breaking out of the stocks recent high.

Traders have been selling Cheniere Energy all day, however, indicating that shares are likely at a near-term top. Given the massive gap higher on Oct 26th and the subsequent rally higher, it is certainly not out of the question that shares need to consolidate.

Cheniere Energy remains above the 20-day and 50-day moving averages (~$10.30 and ~$9.00, respectively), both of which should act as support.

With that said, there have been rumors today that the company may be organizing a secondary offering. Given the fact that Cheniere Energy is trading at a three-year high, you cannot dismiss the possibility.

Note that LNG has 22.11% short interest.

Cheniere Energy, Inc. is an energy company primarily engaged in liquefied natural gas LNG-related businesses. The company owns and operates the Sabine Pass LNG terminal in Louisiana through its 90.6% ownership interest in and management agreements with Cheniere Energy Partners, L.P.