CHK - continuing to unravel

Whilst the main market saw mixed chop, there was notable weakness in the energy sector. Chesapeake (CHK) settled lower by a very significant -4.4% @ $17.19. The bigger picture is offering a capitulation low in the summer, somewhere in the $12/10 zone.


CHK, daily

CHK, weekly

Summary

Recent earnings were lousy.. and it is no surprise to see CHK continue to implode.

With Oil prices looking vulnerable to breaking the recent $43 low (most bearish case remains 35/30 zone)... CHK looks set for broad weakness into the summer.

*I remain very bullish about CHK - and most other energy stocks, once we're past the summer. For now.. it is one to watch.