Approaching Support- Chesapeake Energy

Published on Tuesday, 13 July 2010 06:00 Written by Danny Miller

New York, July 13th (TradersHuddle.com) - Shares of Chesapeake Energy Corporation (NYSE:CHK) are trading very close to calculated support at $20.31 with current price action closing at just $21.26 places the stock price near levels where traders will start paying attention.

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 current stock range is defined by current calculated support defined at $20.31 and by the resistance level at $21.72, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Chesapeake's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $21.72 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.