Chesapeake Energy Broke Resistance

Published on Wednesday, 20 June 2012 06:24 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of Chesapeake Energy Corporation (NYSE:CHK) closed the session at $18.71 just above calculated resistance at $18.11. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $16.69 and resistance at $18.11. Given that this range was broken, traders will be closely monitoring Chesapeake's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Chesapeake Energy is still near the broken resistance level, traders will be focusing on the $18.11 level to see if the stock holds the breakout without rolling over.