Wednesday, 29 March 2017

CHK - battling for a net monthly gain

Whilst the main equity market saw a day of minor chop, there was notable significant strength in the energy sector. Chesapeake Energy (CHK) settled higher by a very powerful 7.8% at $5.81. With today's gain, CHK is now set for a net monthly gain. First big upside target is the $8.00/8.25 zone.

CHK, daily

CHK, monthly


Today's oil inventories helped give energy stocks an extra kick upward. Even though Chesapeake is Nat' gas focused, it is unquestionably greatly swayed by price action in WTIC oil.

Cyclically - short term, we tested the 50dma today... the 200dma is just a touch high. Things turn very bullish with some price action above declining trend/resistance, which will be around the $6.00 threshold in mid April.

Mid term, CHK looks headed (eventually) for core resistance at the $12 threshold. Its notable even a move to that level would still be a massive way below the levels from summer 2014.