by Sam Collins 08/26/08
Chesapeake Energy Corp. (CHK) -- This oil and natural gas exploration and production company has been in a bull market for more than a decade.
But last October, CHK broke from its bullish pattern and jumped from $35 to over $70 in eight months. On July 25, with CHK at $49.20, the Trade of the Day said, "The recent pullback in crude oil resulted in profit-taking for many oil producers and drove CHK from above $70 to $45. Yesterday's high-volume reversal resulted in a stochastic buy signal as well as a buy signal from our own internal indicator, the CBR. The trading target is $60."
The recent new low does not alter the outlook for CHK and the rally which took it above the 200-day and 20-day moving average is a new buy signal. The target remains at $60.
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