New York, March 9th (TradersHuddle.com) - Shares of Chesapeake Energy Corporation (NYSE:CHK) closed the trading session at $25.59 near its 50 day and 200 day moving averages currently set at $26.64 and $24.50 respectively. Chesapeake's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

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.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Chesapeake Energy with a small position and wait for the stock to break out above the 50 day moving average at $26.64, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $24.50 breaks it could mean further downside in the horizon for Chesapeake Energy.