Tuesday, 6 September 2016

CHK - still battling toward the $7s

Whilst the main market settled moderately higher, there was notable strength in some of the energy stocks. Chesapeake Energy (CHK) settled higher by a significant 3.0% @ $6.80. Next target remains the $7s. Any monthly close above the April high of $7.59 will give clarity that the 10/12 zone will be hit.

CHK, daily

CHK, monthly


Suffice to add...  relative to the recent oil weakness, CHK held up very well.

Current price action is especially strong, and the $7s are clearly within range in the immediate term.

Things get really interesting on any monthly close >$7.59.. as that would bode for a continued run to the psy' level of $10. Considering the speculative nature of the stock, a move to the $10s before year end seems very possible, as more bullish chasers will appear.

Something to reflect upon.... in summer 2014.. CHK was trading in the $29s.