CHK Chesapeake Energy 9/15/08 Technical Analysis

Technical Analysis for Chesapeake Energy ( CHK ) - Support and Resistance Levels

CHK has been a stock that has gotten hammered with lower energy prices. Chesapeake appears to have made a new low last week at $38.10. This low is support for now and it appears as though a reverse head and shoulders pattern is forming with $38.10 being the top of the head. This formation signifies a bear trend bottom and when the last shoulder is formed, the stock forms a bullish breakout and starts a new uptrend.

It is a bit early to tell this but the ingredients are coming together as the winter heating season is upon us. I am looking to get long on a close over $42.50 in which you could easily see a run back to the $48-$50 level.

Chesapeake Energy ( CHK ) has great fundamentals and at below $40 per share, you are getting the biggest shale play, The Haynesville Shale, for free!