• Error loading component: com_content, 1
  • Error loading component: com_content, 1
  • Error loading component: com_content, 1

chk New York, December 24th ( - Shares of Chesapeake Energy Corporation (NYSE:CHK) ended the trading session lower by $0.26 or -1.48% from its previous close. Chesapeake's price action in the session formed what is considered to be a Hammer, where bears drove prices lower intraday. However, the strong finish indicates that bulls regained control, forming a trend reversal.

Chesapeake Energy Corporation (NYSE:CHK) produces oil and natural gas. The Company's operations are focused on discovering, developing and acquiring conventional and unconventional natural gas reserves onshore in the United States.

Chesapeake's stock has been trading in a well defined range with calculated support at $16.52 and resistance at $17.58. This range can be used by traders to plan their next moves.

Traders wanting to establish a position in Chesapeake Energy or traders that are already holding the stock can use the hammer formation to their advantage, since the pattern signal a potential bullish trend reversal.

The Hammer is an important candlestick pattern, as it can mark bottoms and support levels. Further buying pressure, and preferably on expanding volume, is needed before acting, as heavy volume will serve to confirm the validity of the reversal.

In the case of Chesapeake Energy, traders who want to add to their positions or start a new position, need to watch for confirmation of the reversal. Below a Hammer illustration:

Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:

      Site Search:


      Technical Scans

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      o Dow Jones 17,995.16 ▼39.77 (-0.22%)
      o S&P 500 2,101.31 ▲0.91 (0.04%)
      o NASDAQ 5,017.09 ▲22.49 (0.45%)

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:17,995.16 Trade time:10:40AM EDT Value change:▼39.77 (-0.22%)

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,101.31 Trade time:10:40AM EDT Value change:▲0.91 (0.04%)


      Company ID [INDEXNASDAQ:.IXIC] Last trade:5,017.09 Trade time:10:40AM EDT Value change:▲22.49 (0.45%)

      In The Wires

      Copyright © 2013 All Rights Reserved.