Bullish Argument For CHK
At first glance CHK looks very bearish, but after checking it out, I think this could be a good place for some sideways action then a bullish bounce.
1) Trend line with multiple touches
2) Gap
3) Fib confluence zone using one retracement and one extension
4) Potential MACD triple divergence
5) So far, it is short of reaching the lower channel line, signaling weakness.
I would watch to see if price consolidates a little in the blue box after such a large and sudden move. Normally these kinds of consolidations work in favor of continuation, but given the reasons above, it could actually mean an exhaustion move triggering a reversal.
1) Trend line with multiple touches
2) Gap
3) Fib confluence zone using one retracement and one extension
4) Potential MACD triple divergence
5) So far, it is short of reaching the lower channel line, signaling weakness.
I would watch to see if price consolidates a little in the blue box after such a large and sudden move. Normally these kinds of consolidations work in favor of continuation, but given the reasons above, it could actually mean an exhaustion move triggering a reversal.
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