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By Mill Chart

Last update: Apr 24, 2024

We've identified CHESAPEAKE ENERGY CORP (NASDAQ:CHK) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:CHK for further developments.

CHK Daily chart on 2024-04-24

In-Depth Technical Analysis of NASDAQ:CHK

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, CHK scores 8 out of 10 in our technical rating. Although CHK is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • CHK is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so CHK is performing more or less in line with the market.
  • In the last month CHK has a been trading in the 85.23 - 91.03 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
  • When comparing the yearly performance of all stocks, we notice that CHK is one of the better performing stocks in the market, outperforming 71% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
  • CHK is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 48% of 214 stocks in the same industry.

Check the latest full technical report of CHK for a complete technical analysis.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:CHK exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

CHK has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 88.94. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 88.53, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CHK in the last couple of days, which is a good sign.

How to trade NASDAQ:CHK?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.