CHK finds buyers at key support level
Chesapeake Energy (CHK) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
CHK ended the week 4.48% higher at 4.66 after gaining $0.03 (0.65%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CHK as at Aug 10, 2018):
Friday's trading range was $0.12 (2.61%), that's below last trading month's daily average range of $0.22. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 4.55 and 4.72 which it has been in now for the last three days.
After trading as low as 4.55 during the day, the stock bounced off the key support level at 4.55. The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key resistance level at 4.72.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 4.72 where further buy stops could get activated.