Trading Strategy; Golar LNG

I still keep a bearish position in Golar LNG (GLNG) and bought new puts today for the short-term trade.

When preparing a trade I usually study and annotate up to six different time horizon P&F charts from a medium horizon chart to an intraday chart. I look for price objectives, support and resistance levels, obvious and hidden trendlines and for confluence areas. It takes time, yet the detailed roadmap helps not being overwhelmed by emotions when sudden fast market moves happen.

Here are some of my working charts in connection with the GLNG trade.

Initially, I opened a bearish position in GLNG on March 21 following a Triple Bottom sell signal (pink box) on the medium horizon chart. There was no strong support below and I expected that the price goes to the 32.5-33 area of the previous bottom.

The price, however, bounced from the former resistance line, which turned into support at 34.5 on the short horizon chart, and pulled back to the resistance line, which contained this downtrend on the upside all March. This level at 37.2 happens to be a strong horizontal resistance also (green 7 on the right side of the previous chart). So, I bought more puts for the short-term trade on March 26 (red arrow).



I sold those puts on Apr 03 when the price fell to the 35.4 level – the confluence area of a horizontal support and falling support line (former resistance) on the near horizon chart. The price stopped on the second declining support line and bounced back again after a short sideways move. This short-term consolidation allows projecting a near-term upside price target at 36.6 for the rebound. It is just a couple boxes below the strong horizontal resistance at 36.9 and ascending resistance line (former support). Take a look at two previous charts, this level is the upper boundary of the downtrend channel.

Assuming that the current level will serve as resistance again I bought additional puts today for the short-term trade in GLNG. If I am wrong I will know soon enough.

Bought to open GLNG May13 35 Put 10 contracts at $0.70

Disclaimer: I express only my personal opinion on the market and do not provide any trading or financial advice (see Disclaimer on my site).