I know it is an extremely small amount but hey 17% is 17% either way.
Being right always feels good. This one has yet to prove itself but my thesis was that if chk didn’t break 1.72 on the downside before resuming a bullish pattern then I would consider it a strong buy… This is exactly what happened… well close… for someone buying at my level it did… maybe someone with access to much more capital could have snagged some for as low as 1.71 or just under but that was a killer morning. Just check the chart here…
Chesapeake Energy shot to a high of $1.99 a share today with the momentum of a 7-day rally from $1.33. There are most certainly fundamental reasons for this, like rising natural gas prices. the technical side is what has me intrigued. the opening spike and subsequent drop I see as a break in the up every day trend. However, I do not believe that this is the deciding point that will take us to new lows for Chesapeake. If you take a look at the chart I posted I’ve circled the reasons I believe this is now in a downtrend. The trend line you see drawn there indicates where I think we will be either headed to new lows with Chesapeake or back up to challenge the 2.00 level. This stock has trended down for quite a long time before this rally I would not be surprised to see it take a few more hits before we get the possibility of more upside here. I’m sure many have watched their account values fall while holding this stock so some will be getting out while they see they have a good opportunity. On the other hand, if you had only been holding this stock for the last week you could have seen a huge return causing some very bullish emotions to come into play. Come tomorrows open for Chesapeake I expect to see it fall, and I expect this downtrend to continue for a few more days. If my projections are correct and Chesapeake doesn’t break 1.72 before resuming a bullish pattern I will consider it a strong buy.
This post is not meant to be financial, trading, or investing advice of any kind.