Tag: Chart Spotlight

Chart Spotlight: Tellurian Inc. (TELL)

Posted on by Ian Cooper

Natural gas prices are exploding.

For one, Russia said it would cut natural gas shipments to Europe.

In fact, as noted by Barron’s, “Russian company Gazprom said on Monday that it will cut natural gas shipments from the key Nord Stream pipeline to Germany starting this week. The pipeline’s exports will be cut to 20% of capacity, down from 40%, because of a sanctions-related issue with turbines serving the pipeline.”

Two, there are drought conditions in the U.S., and a heat wave forcing millions to turn up their air conditioners to full blast.

Three, according to EQT CEO Toby Rice, as quoted by Barron’s, “In the United States, we’ve got the natural gas here, we’ll be fine. But you think about our allies in Europe, and the tremendous power and influence that Russia has on these countries. Clearly, we need to take away the gun, and provide the energy to our allies around the world.”

All could create a big opportunity for natural gas stocks, like Tellurian (TELL).

Tellurian – a $2.1 billion company – is “building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide.”

Better, the company could benefit from a substantial shortage of natural gas.

In fact, according to its latest investor deck, geopolitics and energy security providing a step change in global LNG demand. Tellurian notes there’s (1) underinvestment in energy and post-CV structural growth have collided with a geopolitical crisis; (2) A need to replace 20 Bcf/d of Russian gas to Europe, equivalent to ~35% of the world’s LNG market; (3) Natural gas shortage expected to lead to catastrophic consequences.

Technically, according to MarketClub, shares of TELL are slightly overbought. The MarketClub Smart Scan also gives the stock a score of +60, which tells us at the moment, the stock is struggling to move in a solid trend.

However, with natural gas prices showing no signs of cooling off, I’d like to see the stock run from a current price of $3.68 to $5, near-term.

The MarketClub Trade Triangles are also mostly green.

While it’s telling us that the longer-term trend has been down over the last month, the intermediate trend has been strong since mid-July. In addition, the short-term trend, according to Market Club, has been up since mid-July as well.

TELL Chart with Trade Triangles

Source: MarketClub

Ian Cooper
INO.com Contributor

The above analysis of Tellurian Inc. (TELL) was provided by financial writer Ian Cooper. Ian Cooper is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Ian Cooper expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Chart Spotlight: Marathon Digital Holdings (MARA)

Posted on by Ian Cooper

Cryptocurrencies are showing big signs of life again.

Look at Bitcoin, for example. After crashing to a low of $19,097, BTC is now back up to $22,960. Not only is that great news for cryptocurrencies, it’s a strong catalyst for mining stocks, like Marathon Digital Holdings (NASDAQ: MARA).

After all, miners rise and fall with the price of Bitcoin.

Technically, MARA just broke above double top resistance dating back to late May 2022. Now, from a current price of $11.48, we could see a potential bearish gap refill around $16 a share. If Bitcoin can continue to recover, MARA could even retest $30 at some point.

Granted, there are some red flags...

Not only is MARA at its upper Bollinger Band, it’s also over-extended on Williams’ %R, Fast Stochastics, and on Relative Strength. So, there is some concern. However, if Bitcoin can continue to push higher, MARA is sure to follow.

MARA Chart with Trade Triangles

Source: MarketClub

Helping, BTIG analyst Mark Palmer believes Bitcoin could quadruple from current prices to $95,000 by 2023, as noted by U Today.

Changpeng Zhao, the CEO of Binance believes Bitcoin could rally to $70,000 in “a few months or years,” he said, as quoted by The Guardian.

Even the CEO of MicroStrategy, Michael Saylor has been buying weakness in Bitcoin, too.

Fundamentally, there’s a lot to like about MARA, as well.

In the second quarter of 2022, the company produced 707 self-mined Bitcoin, an 8% increase year over year from 654 bitcoin mined in Q2 2021. Year-to-date Marathon Digital produced 1,966 Bitcoin, a 132% increase year over year. In addition, the total number of miners installed and awaiting energization at Texas facilities increased to 29,640 miners.

Marathon Digital also just secured a five-year deal with Applied Blockchain, which builds and operates data centers throughout America.

With that, Marathon “secured approximately 254 megawatts of new hosting arrangements for its Bitcoin mining operations, with an option to increase to 324 megawatts, from a variety of hosting providers. Marathon believes it has now secured ample hosting arrangements to support the Company’s previously stated goal of approximately 23.3 exahashes per second of computing power for Bitcoin mining,” as noted in a company press release.

That’s big news for MARA, and signals that the company will survive the rout.

From a current price of $11.48, I’d like to see the Marathon Digital Holdings stock test $16 a share, near-term. Longer-term, I’d like to see it test $30 again.

Ian Cooper
INO.com Contributor

Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

Chart Spotlight: Albemarle Corp. (ALB)

Posted on by Ian Cooper

Governments all over the world are pushing for a greener future.

The U.S. wants to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China says it will stop releasing CO2 in the next 40 years.

To help, leaders want millions of zero-emission electric vehicles on the roads as of yesterday.

The International Energy Agency (IEA) estimates we could see 135 million EVs in the next 10 years. Analysts at Ernst & Young say EV sales could outpace combustion engines in Europe, China, and the U.S. in the next 12 years.

There’s just one problem.

Every electric vehicle requires 22 pounds of lithium - the main ingredient in rechargeable batteries and energy storage devices.

Unfortunately, we don’t have enough supply to meet demand.

In fact, according to Investing News, “With sales of electric vehicles expected to continue to surge in key markets, demand for lithium is forecast to grow exponentially, and if there’s one thing producers agree on is that more supply is needed. Figures as to how much output will be required vary slightly, but the speed at which the industry has to scale up to reach those levels is unprecedented.”

That being said, I expect to see higher highs for lithium prices, and for related stocks, like Albemarle Corp. (ALB), the industry’s 800-pound gorilla.

Fundamentally, ALB is undervalued, trading with a PEG ratio of just 0.50. With lithium demand only rising, I don’t expect for ALB to remain undervalued for long.

Plus, the company recently raised its guidance twice. In May, for example, the company raised its forecast for the full-year, noting it expects for 2022 sales to come in between $5.8 billion and $6.2 billion. Adjusted EBITDA is now expected to come in between $2.2 billion and $2.5 billion, with adjusted EPS of between $9.25 and $12.25.

ALB stock is also technically oversold. In fact, if we pull up a one-year chart, we can see the stock just caught double bottom support dating back to April. We can also see the stock is oversold at its lower Bollinger Band, with over-extensions on Williams’ %R, Fast Stochastics, and RSI.

ALB Chart with Trade Triangles

Source: MarketClub

From a current price of $198.65, I’d like to see Albemarle Corp. (ALB) refill its bearish gap around $230 a share initially. Longer-term, I’d like to see it closer to $250.

Ian Cooper
INO.com Contributor

Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

Chart Spotlight: Generac Holdings (GNRC)

Posted on by Ian Cooper

Every summer, power generator stocks, like Generac Holdings (GNRC) soar.

All thanks in part to hurricane season, intense heat, and the potential for blackouts. All of which increases demand for power generators from companies such as Generac Holdings.

  • In the summer of 2017, GNRC jumped from about $35 to $38
  • In the summer of 2018, GNRC jumped from about $50 to $56
  • In the summer of 2019, GNRC jumped from about $57 to $75
  • In the summer of 2020, GNRC jumped from about $112 to $191
  • In the summer of 2021, GNRC jumped from about $319 to $420

Even better, three out of the last four monthly MarketClub Trade Triangle signals highlighted a positive move for the stock.

The last monthly green Trade Triangle was issued at $118.86 on May 26, 2020 and pointed to a move higher all the way to the red monthly Trade Triangle at $391.85 on December 3, 2021.

GNRC Chart with Monthly Trade Triangles

Source: MarketClub

While summer 2022 hasn’t started off well for the GNRC, or for any stock out there, it is currently oversold. From a current price of $222.23, I’d like to see the GNRC stock challenge $300 a share again, near-term.

For one, the oversold generator stock could benefit as “demand for uninterrupted and reliable power supply has increased significantly, which has led to the sale of generators. Therefore, generators are considered a robust medium in providing power backup in industrial buildings, data centers, and at times in emergencies,” as noted by Astute Analytica. 

Two, according to TheFly.com: Northland analyst Donovan Schafer said Spruce Point's short report on Generac issued on June 22 "pedantically focuses on immaterial issues" and was "deeply-flawed." He maintains an Outperform rating and $370 price target on Generac shares.

Three, The Wall Street Journal says, “From California to Texas to Indiana, electric-grid operators are warning that power-generating capacity is struggling to keep up with demand, a gap that could lead to rolling blackouts during heat waves or other peak periods as soon as this year.”

Even the Electric Reliability Council of Texas (ERCOT), which operates Texas’ electric power grid, is asking households and businesses to conserve power, warning of rolling blackouts. The grid faces a “potential reserve capacity shortage with no market solution available,” ERCOT said.

Four, analysts at Wells Fargo just initiated coverage of the GNRC stock with an overweight rating, with a price target of $285. The firm believes Generac Holdings is a play on the instability of the current grid.

With that in mind, I believe shares of Generac Holdings (GNRC) could rocket higher. Again, from a current price of $222.23, I’d like to see GNRC stock at $300 a share again, near-term.

Ian Cooper
INO.com Contributor

Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.