By Mill Chart
Last update: Apr 24, 2024
We've identified CHESAPEAKE ENERGY CORP (NASDAQ:CHK) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:CHK for further developments.
Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.
Taking everything into account, CHK scores 8 out of 10 in our technical rating. Although CHK is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.
Check the latest full technical report of CHK for a complete technical analysis.
ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:CHK exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.
CHK has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 88.94. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 88.53, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CHK in the last couple of days, which is a good sign.
One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.
Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.
Our Breakout screener lists more breakout setups and is updated daily.
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.