CHK - still headed lower

With energy prices remaining very weak, Chesapeake Energy (CHK) had yet another bad day, settling -2.5% @ $16.70. Mid term outlook remains very bearish, with next support of $12. If Oil/gas remain broadly weak across first half of 2015, then sub $10 is likely.


CHK, daily

CHK, weekly

Summary

Suffice to say, CHK remains starkly bearish since the summer. With oil prices having collapsed and nat' gas prices also weak, it is not surprising to see CHK smashed lower.

With the mid Oct' low of $16.69 taken out, the door has re-opened to a test of the May '2012 low of $12.10. Frankly, that seems likely.. even if the broader equity market can break into the sp'2100s next Jan/Feb.

If oil prices remain weak across at least the first half of 2015, then CHK will probably continue to remain very weak... $10 looks viable.

Worse case... Oil slips into the 40/30s... and CHK will test the Dec'2008 low of $8.52.


Long term strength

To be clear... I have high confidence in the long term viability of the company, but for now.. have ZERO interest in 'picking up a bargain'. Lower levels... seem very likely. There should be no hurry to get involved in any energy related stock until late spring/summer 2015.