Cheniere Energy Partners Rises 1.95% Amid Technical Battle At Key Support Level

Cheniere Energy Partners (CQP) gained 1.95% to close at $53.40 on July 23, 2025. The following technical analysis examines key indicators and their implications for the stock’s trajectory.
Candlestick Theory
Recent candlestick patterns highlight a battle between bulls and bears near critical levels. The July 23 bullish candle (open: $52.25, close: $53.40) followed a bearish gap-down on July 21, suggesting tentative recovery after testing the $52.25 support. A hammer-like formation materialized on July 22 near this support, reinforcing its significance. Resistance is firm at $54.60–$54.90, evidenced by repeated rejections including the July 18 shooting star and July 17 indecisive doji. A decisive break above $54.90 is needed to confirm bullish momentum, while failure to hold $52.25 may trigger further downside.
Moving Average Theory
The moving average configuration signals sustained downward pressure. The 50-day SMA (approx. $56.50 based on recent closes) hovers above the 100-day SMA (approx. $57.80) and 200-day SMA (approx. $59.00), confirming a bearish long-term trend structure. Price remains below all three key SMAs, with the 50-day acting as dynamic resistance. This alignment suggests persistent selling pressure. A reversal would require sustained closes above the 50-day SMA, which currently caps rally attempts.
MACD & KDJ Indicators
The MACD histogram shows weakening bearish momentum, with the MACD line (-0.85) attempting to converge toward its signal line (-0.92) after July’s sharp decline. This may foreshadow a near-term stabilization. Conversely, the KDJ oscillator presents conflicting signals: the %K line (35) crossed above %D (30) on July 23, hinting at oversold recovery potential. However, both remain below the 50 midpoint, reflecting unresolved downside risk. Divergence emerges as price tested lower lows while KDJ began flattening—a possible early reversal sign requiring confirmation.
Bollinger Bands
Volatility contraction is evident, with bandwidth narrowing to 10% (from 15% in June), signaling reduced momentum and potential breakout preparation. Price currently trades near the middle band ($53.00), indicating neutral short-term bias. The July 21 drop briefly pierced the lower band ($52.10), typically an oversold signal that preceded the current rebound. A sustained move above the middle band could target the upper band ($55.90), while failure might retest $52.10.
Volume-Price Relationship
Volume analysis validates skepticism toward recent gains. The July 23 advance occurred on below-average volume (219k vs. 20-day avg: 280k), suggesting weak conviction. Notable distribution occurred during breakdowns—July 21’s 4% drop saw 280k shares traded, while the July 14 rally on 396k volume failed to sustain momentum. Accumulation is absent; rallies lack volume confirmation, undermining recovery prospects. High-volume breakouts are needed to establish credible upside.
Relative Strength Index (RSI)
The 14-day RSI (38) rebounded from near-oversold territory (30 on July 22) but remains in bearish territory below 50. This aligns with the prevailing downtrend but shows early signs of stabilization. The oversold threshold (30) was nearly tested twice in July, inviting contrarian bids. While not yet flashing a strong reversal signal, the RSI’s divergence from recent price lows—making higher lows as price tested $52.25—warrants monitoring for bullish momentum confirmation.
Fibonacci Retracement
Applying Fibonacci levels to the April-July decline (swing high: $68.04, low: $49.80) reveals critical barriers. The 38.2% retracement ($56.90) rejected prices on July 15–17, while the 23.6% level ($54.30) capped rebounds on July 22. The latest close ($53.40) sits below this near-term hurdle. Confluence exists at $54.30–$54.90 (23.6% Fib + horizontal resistance). Surmounting this zone opens a path to $56.90, but failure below $52.25 (near the 0% retracement) risks retesting the $50 psychological support.
Confluence and Divergence Observations
Confluence of bearish signals dominates: resistance at $54.30–$54.90 aligns with the 23.6% Fib, overhead SMAs, and descending trendlines. Volume absence during rebounds and RSI’s bearish positioning reinforce this barrier. Divergence emerges via KDJ flattening and MACD convergence at the $52.25 support, suggesting potential stabilization. However, the moving average hierarchy and lack of accumulation volumes prioritize downtrend continuation unless a high-volume breakout above $54.90 materializes. Traders should await confirmation at these key technical thresholds before directional conviction.