New York, July 21st (TradersHuddle.com) - Shares of Chesapeake Energy Corporation (NYSE:CHK) closed the trading session at $21.51 near its 50 day moving average currently set at $22.56. Chesapeake's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $20.58 and calculated resistance at $21.77. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Chesapeake Energy shares.

Traders should evaluate their trade if they want to establish a position on Chesapeake Energy given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.