$CHK Trade Idea

$CHK. This set up is very similar to the other Idea of mine with $SLCA. As you can see, the price recently pulled off of its downtrend along the BB, and traded very close to the recent 52 week low. We experienced some strength today since the low set yesterday, but to feel comfortable with this trade I also would like to see it move through the 21 day MA. The RSI on the daily chart also suggests the stock was oversold, and even though it does not show true bullish divergence, the RSI has been steadily moving higher while the price has moved lower. The gap from may 22nd needs to be closed, and is a good point to watch for. This again is purely a technical trade, and for short term potential. I would like to see this stock make a run to the recent highs, but a few resistances need to be broken before that happens. I also believe there is not much downside to this stock unless it trades well below its previous 52-week low, in which I will re-evaluate before getting stopped out.


This trade could go horribly wrong, and the stock could sink. The true bullish divergence might not have happen yet, in which case I may be in the market too early. Who knows? For now I am playing this one from the long side. We shall see how this plays out.


Cheers,
Les

Everything here is purely my opinion, and in no way advice or recommendations on making trades. I may or may not hold positions in the instruments I analyze.

NYSE:CHK

Trade closed manually:

Well traders, i simply got lucky on this trade. I did not place a stop and therefore rode this stock lower. Luckily at the beginning of this week I got out at $1.98 and took home a nice $150 profit or close to 8% gain. I have no other analysis for this trade other than that I should not have held it so long but luckily I closed out with a nice profit.

Comment:

realized I never included entry prices.
400 shares @ 1.84
200 shares @ 1.80

sold 600 shares @ 1.98

Comment:

others I forgot to mention.
Bot
300 shares @ 1.82
Sold
300 shares @ 1.99