Here is my strategy for Chesapeake Energy as it climbs higher


Chesapeake Energy Corp. (CHK) is an oil and natural gas exploration and development company. The charts look positive with energy prices pointing higher. Let’s take a look at this.

In this daily bar chart from CHK, below, we can see that the prices have increased from the end of March. CHK is trading above the rising 50 day moving average line. We don’t have much history with the 200 day line, but it also has a positive slope. The On-Balance-Volume (OBV) line shows a positive trend from March to mid-November followed by a slight decline. The Moving Average Convergence Divergence Oscillator (MACD) is bullish.

In this weekly Japanese candlestick chart of CHK, below, we see a mixed picture. Prices are in an uptrend and are trading above the 40 week positively sloping moving average line. The weekly OBV line is broadly positive and the MACD Oscillator is narrowing towards a new buy signal. We can see a lower shadow in November which marks the lower, but we also see some upper shadows in October and December above $ 67 which tells me traders are rejecting the higher ones.

In this daily CHK point and number chart, below, we can see a bullish price target of $ 74.

In this second CHK point and number chart, below, we have used weekly price data. Here, the software suggests a price target of $ 89.

Result strategy: Traders could go long in CHK at current levels or above $ 70 strength. Risk at $ 61 for now. $ 74 then $ 89 are our price targets.

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