Did CHK Just Break Down?

I’m not one to question why [*] but it appears that CHK broke down from its triangle today on higher-than-normal volume.  If so, an short entry here with a stop above todays high poses low capital risk with a swing target of at least down to the 200d and potentially $5.00 overall.

[*] It could have something to do with dropping seasonal demand.  Only the shadow knows…

2 thoughts on “Did CHK Just Break Down?

  1. brome county ny. chesapeak is in the “cat bird seat”.CHK is largest lease holder in marcellus shale discovery!! University geologists believe it will be largest natural gas find in the world !!!! CHK was first player in!! Aquired acreage as cheap as 5$ per acre!! Now price is pushing up to 7500$ per acre. BP of officials in on town meetings. Rumors abound?? There is a frenzy to sell land to drillers !! Townships and cities want in !!The future looks very bright for our area as well as chesapeak energy .The shale gas wil pull us out of our long term economic recession. Every one is hopeful.

    • CHK certainly is one of the darlings of the sector but do not confuse company strength and potential future performance with stock performance itself. There are a # of great companies out there whose stock underperforms for whatever reason. Oversupply and low nat gas prices have also hurt all nat gas suppliers [ref. 3Q earnings]. When all is said and done, however, it may not have broken down or if it has, one must view corrections as healthy to bring in new buyers waiting at lower levels to scoop up shares. No matter what, CHK will survive.

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