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!
Showing posts with label reverse head and shoulders. Show all posts
Showing posts with label reverse head and shoulders. Show all posts
Monday, September 15, 2008
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