Chesapeake Energy Corp. (CHK) is an oil and natural gas exploration and development company. The charts are looking positive with energy prices pointing up. Let's check it out.
In this daily bar chart of CHK, below, we can see that prices have rallied from late March. CHK is trading above the rising 50-day moving average line. We do not have much history with the 200-day line but it too has a positive slope. The On-Balance-Volume (OBV) line shows a positive trend from March to the middle of November followed by a shallow decline. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of CHK, below, we see a mixed picture. Prices are in an uptrend and trade above the positively sloped 40-week moving average line. The weekly OBV line is overall positive and the MACD oscillator is narrowing towards a new buy signal. We can see a lower shadow in November that marks the low but we also see a few upper shadows in October and December above $67 telling me that traders are rejecting the highs.
In this daily Point and Figure chart of CHK, below, we can see an upside price target of $74.
In this second Point and Figure chart of CHK, below, we used weekly price data. Here the software suggests a price target of $89.
Bottom line strategy: Traders could go long CHK at current levels or on strength above $70. Risk to $61 for now. $74 and then $89 are our price targets.
