Cheniere Energy Partners Drops 3.57% Amid Technical Breakdown And Heavy Selling

Cheniere Energy Partners (CQP) declined 3.57% to close at $56.74 on June 9, 2025, marking two consecutive down days with a cumulative 3.65% loss. This drop occurred on above-average volume of 185,181 shares, suggesting intensified selling pressure. We now examine the technical implications of this movement.
Candlestick Theory
Recent price action shows a bearish pattern developing. The June 3-5 period formed a short-term peak with a long upper wick at $59.81, indicating rejection at the $60 psychological resistance. The subsequent two red candles (June 6 and 9) confirm bearish momentum, closing near session lows with minimal lower wicks. Immediate support rests at $56.56 (June 9 low), aligning with the April 10 swing low. A decisive break below this level may trigger further downside toward the $53–$54 congestion zone. Resistance now solidifies near $59.00, where multiple recent rallies faltered.
Moving Average Theory
All key moving averages exhibit bearish alignment. The 50-day SMA ($58.02) crossed below the 100-day SMA ($59.18) in late May, while both remain beneath the descending 200-day SMA ($60.31). This configuration signals entrenched medium-term bearishness. Price currently trades 5.8% below the 50-day SMA, demonstrating weak momentum. The 200-day SMA's downward slope since April confirms the primary downtrend. Any recovery would need to reclaim the 50-day average to suggest trend improvement.
MACD & KDJ Indicators
The MACD histogram remains in negative territory (-0.28), with both MACD and signal lines submerged below zero since mid-May – confirming bearish dominance. KDJ readings (K: 28, D: 34, J: 16) approach oversold thresholds but show no bullish divergence. The %K line's failure to cross above %D during early June's minor rally signaled false strength. Current momentum indicators align with price deterioration, though deeply oversold KDJ levels may precede a technical bounce.
Bollinger Bands
Bollinger Band width expanded by 15% during June's decline, reflecting rising volatility. Price pierced the lower band on June 9 – typically an oversold signal – but closed near the band's boundary. The June 2 breakdown originated from a multi-week bandwidth contraction, supporting the bearish continuation thesis. The $56.74 close positions CQP near the lower band (estimated $56.40), suggesting potential mean-reversion toward the $58.40 midline if support holds.
Volume-Price Relationship
Volume patterns validate bearish sentiment. June's three highest volume sessions all coincided with declines (June 9, June 2, May 19), indicating distribution. The June 9 sell-off occurred on 66% higher volume than the previous session, confirming conviction behind the break. Notable positive volume divergences are absent, though any recovery should ideally occur on expanding volume to signal accumulation.
Relative Strength Index (RSI)
The 14-day RSI reads 37.6, escaping oversold territory from June 2's low of 28. This moderation during ongoing price weakness implies negative momentum divergence. Since mid-May, RSI failed to breach 50 (the bullish threshold) despite minor rallies, underscoring weak buying pressure. While not yet oversold (<30), the indicator's trajectory aligns with bearish sentiment, needing clearance above 50 to suggest momentum improvement.
Fibonacci Retracement
Applying Fibonacci to the April 2 high ($68.42) and June 9 low ($56.56) shows critical levels. The 38.2% retracement ($61.41) rejected multiple recovery attempts in May. Price currently tests the 78.6% retracement at $56.89. Sustained trading below this level would indicate complete trend surrender. Confluence exists near $56.50–$57.00, combining the 78.6% Fib with June’s double-bottom support and Bollinger Lower Band.
Confluence and Divergence Observations
Multiple signals converge at $56.50–$57.00: Bollinger lower band support, Fibonacci 78.6% level, and recent price double-bottom. A decisive break below this zone would accelerate selling pressure toward the $53–$54 area. The absence of positive divergence among oscillators (RSI, MACD, KDJ) reinforces bearish momentum. Although short-term oversold conditions may spark consolidation near $57, the convergence of moving average resistance and declining volume on up days suggests limited recovery potential. Probabilistically, risk remains skewed downward unless price reclaims the $59 resistance cluster (38.2% Fib + 50-day SMA + psychological barrier).