Trade Ideas Newsletter 04/25/2016

CHK is showing significant strength right now

Based on the analysis above in CHK, traders should determine that their portfolio can handle the additional risk from a new position. Also be sure that CHK is not significantly correlated with your existing positions. Lastly, experienced traders never ignore how a new addition relates both to the overall market conditions as well as their existing account. For example, check the S&P 500. Is it trending or stationary recently? Has it moved up or down though key levels? Be sure to matvh up your trading actions on CHK with the overall market so you are fighting the crowd.

CHART

Currently the important sentiment levels, evaluated by Traders For Wealth, have shown an increasingly positive bias toward CHK. Also, the price action in CHK has been moving up a lot. This is a strong sign for a potential upside breakout. Traders should view this as a bullish trade and make sure it aligns with the overall market mood, and their current positions.

Chesapeake Energy Corp (CHK)

Chesapeake Energy Corporation is a producer of natural gas, oil and natural gas liquids (NGL) in the United States. The Company operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. The exploration and production segment is responsible for finding and producing oil, natural gas and NGL. The marketing, gathering and compression operating segment is responsible for marketing, gathering and compression of oil, natural gas and NGL. The Company owns interests in approximately 45,100 oil and natural gas wells that produced an average of approximately 729 thousand barrels of oil equivalent (mboe). The Company also own oil and natural gas marketing and natural gas gathering and compression businesses. As of December 31, 2014, the Company held an interest in approximately 45,100 gross productive wells, including 33,600 properties in which it held a working interest and 11,500 properties in which it held an overriding royalty interest.