Yesterday I scribbled about the nice consolidation phase in CHK and how above $34.60 I could be a buyer for a bucket 2 trade, see here http://steadytrader.wpengine.com/chesapeake-energy-chk-attractive-above-34-60/
Today's price action is entirely different and all the more important to note. Today CHK broke below an uptrend line in place since last December, as well as the 50 day moving average (yellow line), and as such also fell out of the narrowing trading range mentioned in yesterday's blog post.
While I still like the name longer term, I will only commit any capital to longs above $34.60. More specifically, what we are discussing in the chat-room is a bucket 2 short trade.
