Chesapeake Energy Is Approaching its 50 Day Moving Average
Published on Friday, 21 December 2012 05:56 Written by TradersHuddle Wire
New York, December 21st (TradersHuddle.com) - Chesapeake Energy Corporation (NYSE:CHK) ended the trading session at $17.58, near its 50 day moving average set at $18.24. Chesapeake's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
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 latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $16.52 and resistance at $17.83. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in Chesapeake Energy, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.
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