Chesapeake Energy (CHK) suffered a huge decline in 2014 and 2015. Prices finally stabilized in the first half of this year and now it looks like CHK is set up to make more of a comeback in the months ahead.
The short-term picture is slightly mixed but the longer-term picture remains promising.
In this daily chart of CHK, above, we can see a bullish golden cross of the 50-day and 200-day moving averages. CHK has dropped below the 50-day average but its slope is still positive. CHK is above the rising 200-day average. The On-Balance-Volume (OBV) line turned up in February and is still positive, telling us that buyers of CHK have been buying more stock on days when CHK has closed higher. There is a small bullish divergence between the lower lows in price in September and more recently, but higher momentum readings. Strength in CHK over $7 and then over $8 will get investors more excited.
In this weekly chart of CHK, we can see prices are above the rising 40-week moving average. The weekly OBV line is constructive and the MACD oscillator is above the zero line and rising.