Our analysis of the chart sees a high likelihood that the recent news will cause a reversion back to the $5.75 level where short- and intermediate-term support should help to buoy shares and offer the bullish traders their chance to take CHK for a trade. This is the line between a bull and bear market for a stock from the technical view, meaning that we should see resistance at that price point. This technical situation is in the process of unwinding now and will result in additional selling pressure, as there are usually a lack of buyers when a stock becomes overbought.įrom a longer-term perspective, the technicians were all over Chesapeake as a stock that was likely to see some resistance as shares had just encroached their 20-month moving average, currently at $7.81.

Shares of CHK are coming off a short-term overbought situation after the last rally pushed share prices to the $8 mark. The technical picture helps support that outcome as well. News that Carl Icahn has reduced his holdings in CHK stock will certainly reverberate through the price chart over the next week or so as the market, and others riding his coat tails, decide whether to sell or hold.Ĭhesapeake shares are trading a healthy 91% higher since the beginning of June, which in most investors’ books sounds the “cash in profits” alarm.

Chk stock after hours