Chesapeake Energy Corporation (NYSE:CHK) HEFFX Highlights

Chesapeake Energy Corporation (NYSE:CHK) HEFFX Highlights

Chesapeake Energy Corporation (NYSE:CHK) HEFFX Highlights

Chesapeake Energy gained 4.3% to $5.28 today, while the S&P 500 rose 0.5% to 2,440.35. The Energy Select Sector SPDR ETF (XLE) rose 0.7% to $67.39.

Chesapeake Energy’s market capitalization rose to $4.7 billion today from $4.6 billion yesterday. It reported a net loss of $4.4 billion on sales of $8.6 billion in 2016.

The results of the tender offer are according to the management’s wishes.

There will be an increase in debt and interest expense if the management does not decide to use its cash balances.

Sensitivity to oil price is causing the stock price to be volatile.

Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL. As of December 31, 2016, it owned interests in approximately 22,700 oil and natural gas wells. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the Marcellus Shale in the northern Appalachian Basin in Pennsylvania.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 5.48.

The projected upper bound is: 5.52.

The projected lower bound is: 4.49.

The projected closing price is: 5.00.

 

CHESAPEAKE ENER closed down -0.260 at 5.020. Volume was 11% above average (neutral) and Bollinger Bands were 2% wider than normal.

Open     High      Low        Close      Volume
5.190     5.190     4.970     5.020     44,579,812

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period         50-period       200-period
Close:                       4.99                  5.49                 6.16
Volatility:                65                     60                     65
Volume:                  42,564,224     41,662,068     45,889,352

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

CHESAPEAKE ENER is currently 18.5% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of CHK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on CHK and have had this outlook for the last 33 periods.

 

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 76.3637. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.59. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 66 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 9. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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