CHK runs into sellers again around 13.48
Chesapeake Energy Corporation (CHK) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
CHK finished Monday at 13.01 flat on low volume, slightly underperforming the S&P 500 (0.38%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CHK as at Jun 01, 2020):
Monday's trading range has been $0.66 (5.11%), that's far below the last trading month's daily average range of $1.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHK.
After having been unable to move above 13.46 in the previous session, Chesapeake Energy ran into sellers again around the same price level today, failing to move higher than 13.48. The last time this happened on May 28th, CHK lost -2.25% on the following trading day.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 14.30 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 12.47 where further sell stops might get triggered. With prices trading close to this year's low at 7.77, downside momentum could speed up should the stock break out to new lows for the year. Further buying might move prices higher should the market test May's close-by high at 18.34.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for Chesapeake Energy. Out of 520 times, CHK closed lower 50.77% 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 53.85% with an average market move of -1.24%.
Market Conditions for CHK as at Jun 01, 2020
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