CHK closes within prior day's range after lackluster session
Chesapeake Energy Corporation (CHK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHK finished the week 27.06% higher at 13.71 after losing $0.45 (-3.18%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CHK as at May 22, 2020):
Friday's trading range has been $1.51 (10.72%), that's below the last trading month's daily average range of $3.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHK.
Prices are trading close to the key technical resistance level at 14.32 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 15.17 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 11.11 where further sell stops might get activated. As prices are trading close to May's high at 18.34, upside momentum could speed up should the stock mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Chesapeake Energy. Out of 757 times, CHK closed lower 50.99% 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 52.97% with an average market move of -1.15%.