Approaching Resistance: Chesapeake Energy
Published on Tuesday, 25 December 2012 06:20 Written by TradersHuddle Wire
New York, December 25th (TradersHuddle.com) - Shares of Chesapeake Energy Corporation (NYSE:CHK) are trading very close to calculated resistance at $17.58. The stock ended the trading session at just $17.02, which is near levels that make it difficult to buy or start a position.
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 stock range is defined by its calculated support defined at $16.52 and by the resistance level at $17.58; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Chesapeake Energy. However, as the stock pulls back towards $16.52 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $17.58 then traders will get an opportunity to enter the stock as it moves to a higher range.