LNG Shipping Stocks Rally as UPI Approaches Resistance on Strong Volume

By
Mfame Editor
-
23

 

  • UPI Gains 2.98% on Strong Volume and EU–US LNG Deal.
  • Japanese Shipping Giants Lead Weekly Rally.
  • Chevron and Exmar Advance, Shell Lags Near Resistance.

LNG shipping stocks reported a notable increase last week, with the UP World LNG Shipping Index (UPI) rising 2.98% to 166.96 points. This bounce back has helped it regain crucial support and get closer to that long-term resistance level at 170. The increased trading volume indicates that investors are showing renewed interest, even as the market remains in a tight trading range.

Technical Indicators Signal Further Gains

The UPI has managed to break above its weekly moving averages (MA 10 and MA 40), indicating potential for further gains. Plus, a new EU–US LNG agreement that boosts US LNG sales to Europe adds to the optimistic outlook. While the shift from support to resistance in just a week is a bit delicate, it does suggest that momentum is leaning towards an upward breakout.

UPI vs. S&P 500

The UPI increased by 4.83 points (2.98%), while the S&P 500 saw a smaller rise of 1.46%. This sharp increase in the UPI has brought it close to the upper Bollinger Band (BBUp), breaking free from its previous stagnation. Coupled with the higher trading volume, this supports a positive trend in the near term.

Japanese Companies Boost Index Performance

  1. K Line and Mitsui O.S.K. Lines jumped over 6%
  2. NYK Line saw a nearly 4% increase

All three stocks approached or tested their resistance levels, with MOL making a strong comeback from support.

Chevron, Exmar, and Shell Show Some Gains

  1. Chevron: Up 3.5%, getting close to $155 resistance
  2. Exmar: Up 3.5%, this move is seen as minor
  3. Shell: Up 2.4%, still struggling below a strong resistance level it hasn’t broken through for months

Mixed Results: Tsakos, Flex LNG, Dynagas, Golar

  1. Tsakos: Up 1.8%, likely to trade sideways
  2. Flex LNG: Up 0.2%, indicating some accumulation
  3. Dynagas: Down 1.4%, showing volatility but moving sideways
  4. Golar LNG: Down 1.1%, hovering near resistance

Significant Drops: New Fortress and Excelerate Energy

  1. New Fortress Energy: Down 17.4%, remains quite volatile
  2. Excelerate Energy: Down 10.4%, continuing its decline since June; there’s a risk of dropping further to $20–$18

Other Movements and Emerging Trends

  1. Capital Clean Energy Carriers: Down 4.2%, approaching resistance
  2. Korea Line Corp: Down nearly 2%, hinting at a possible correction

Hidden trends are starting to emerge, and many stocks could make significant moves in the coming weeks.

Outlook: Positive but Uncertain

Even with global uncertainties, the long-term outlook remains bright. The demand for LNG, new contracts, and policy changes will shape the next phase. Key resistance levels could spark further gains, although we should expect some volatility in the short term.

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Source: LNG Shipping Stocks