After Yesterday's Rally of 6.57% Shares Could Potentially Pullback
Chesapeake Energy (NYSE:CHK) traded in a range yesterday that spanned from a low of $6.03 to a high of $6.58. Yesterday, the shares gained 6.6%, which took the trading range above the 3-day high of $6.25 on volume of 37.8 million shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.
Over the past year, Chesapeake Energy has traded in a range of $1.50 to $16.98 and is now at $6.49, 333% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 1.6% while the 50-day MA has advanced 6.3%.
SmarTrend recommended that subscribers consider buying shares of Chesapeake Energy on June 8th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $4.99. Since that recommendation, shares of Chesapeake Energy have risen 22.2%. We continue to monitor CHK for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Keywords: rebounders Chesapeake Energy