CHK dominated by bears dragging the market lower throughout the day
Chesapeake Energy Corporation (CHK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHK ended the week -11.76% lower at 0.45 after tanking $0.04 (-8.16%) today on high volume, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over three weeks. Today's close at 0.45 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 0.48, the market confirmed its breakout through the previous session low after trading up to $0.03 below it intraday.
Daily Candlestick Chart (CHK as at Feb 14, 2020):
Friday's trading range has been $0.04 (8.16%), that's slightly above the last trading month's daily average range of $0.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHK.
Three candlestick patterns are matching today's price action, the Bearish Closing Marubozu, the Bearish Marubozu and the Black Candle which are known as bearish patterns. The last time a Black Candle showed up on Wednesday, CHK lost -2.00% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Marubozu" stand out. Its common bearish interpretation has been confirmed for Chesapeake Energy. Out of 3 times, CHK closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.67% with an average market move of -12.08%.