• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Energy

Chesapeake Energy Is Still Searching for the Bottom

Volume has been heavy the past five weeks and gives us a hint that some longs have thrown in the towel.
By BRUCE KAMICH
Dec 07, 2015 | 04:30 PM EST
Stocks quotes in this article: CHK

Has Chesapeake Energy (CHK) reached a bottom? A bottom is a process. It is that point in a downtrend when prices finally stabilize. Investor buying is strong enough to offset trader liquidation. Sentiment and news is probably negative, but farsighted investors have begun to accumulate shares as they anticipate they will be trading higher in the months ahead.

In this chart of CHK, above, we can see that the trend is still down with CHK below its declining (negative slope) 50-day and 200-day averages. The Slow Stochastic and the Relative Strength Index (RSI) in the bottom two panels are at low levels, meaning they are oversold (i.e. have gone down too fast), but they have yet to turn up. A security can always get more oversold. Volume has been heavy the past five weeks and gives us a hint that some longs have thrown in the towel.

This second chart of CHK, above, shows the steep and persistent decline. The Slow Stochastic is very oversold and the 14-week RSI is also oversold. The On-Balance-Volume (OBV) line on this time frame might be holding its prior low -- we'll see. Certainly CHK has something to reverse and sentiment is bearish -- we just need prices to get the message.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

TAGS: Investing | U.S. Equity | Energy

More from Energy

Peabody Is Glowing Hot

Mark Sebastian
Aug 17, 2022 3:19 PM EDT

Here's how to play Peabody Energy as it looks like it could fire up over $25.

The Pendulum Swings Back, but Don't Look for Things to Stabilize

Peter Tchir
Aug 15, 2022 11:00 AM EDT

It could swing past the point where things look normal or OK to a point where things look bad again.

Where Are Crude Prices Heading, and Could They Clog Up a Recovery?

Bruce Kamich
Aug 12, 2022 11:00 AM EDT

Let's check the charts to see where we can expect oil prices to flow.

PPI Cools, Home Prices Don't, Fed in the Dark, Technical Battle Lines, Chevron

Stephen Guilfoyle
Aug 12, 2022 7:29 AM EDT

Just when is the Federal Reserve going to reduce the cash slosh, anyway?

This New Energy Fund Sounds Dirty, But Could Help Investors Clean Up

Mark Abssy
Aug 11, 2022 1:33 PM EDT

The Strive U.S. Energy exchange-traded fund is billed as an anti-ESG ETF. Let's see how it stacks up against the similar Energy Select SPDR Fund.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login