GOLAR LNG LTD is setting up nicely for a breakout.

A possible breakout setup was detected on GOLAR LNG LTD (NASDAQ:GLNG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:GLNG.

What is the technical picture of NASDAQ:GLNG telling us.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to GLNG. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, GLNG is only an average performer.

• The long and short term trends are both positive. This is looking good!
• In the last month GLNG has a been trading in the 21.96 - 24.54 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that GLNG is one of the better performing stocks in the market, outperforming 77% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• GLNG is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 55% of 218 stocks in the same industry.
• GLNG is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so GLNG is lagging the market.

Check the latest full technical report of GLNG for a complete technical analysis.

Why is NASDAQ:GLNG a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:GLNG this score is currently 9:

Besides having an excellent technical rating, GLNG also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 24.25. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.92, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GLNG in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:GLNG be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.