Tomahawk, WI 2/27/2014 (Basicsmedia) –  Looking for the best entry point into trading Chesapeake Energy Corporation (NYSE:CHK)? Well then, let us see what was the trend of this stock to start with, that is within the past one year.

From $15.90, the stock has moved up to a high of $29. This was all through the high tops and high bottoms. It kept on following this trend line, making three to four attempts on the lower trend line. The stock also followed an upper end trend line, making about five to six attempts on the upper trend line.  So then, that looks like a very broad channel.

Upside-Downside and sideways attempts

After a strong move from $19 to $29, the stock of Chesapeake Energy Corporation (NYSE:CHK) has then gone into a sideways zone, revealing about four attempts on the upside, and almost four to five attempts on the downside. The sideways zone comes around $23.50 to $24. So then, the support comes in the range of $23.50 to $24.

Buying the stock

The stock has seen a huge gap down. So then, one has to buy around the support zones, that is, $23.50 – $24. The other way to buy Chesapeake Energy Corporation (NYSE:CHK) is to purchase the stock at the breakout. As such, the trading strategy out here would be to either buy on a breakout around the upper side of the sideways zone which is $27.50 or there about. That would basically mean the momentum trade. However, that level is a bit further now, given that the stock is seen around $25 – $26 zone.

The other way to buy Chesapeake Energy Corporation (NYSE:CHK) is to look for a far jump towards $27 – $27.50 which is the upper end of channel of the stock. This will be a nice risk reward.  So then, $23.50 – $24 is a nice entry point in this stock. It can also be the momentum confirmation which is $27.50. That would be coming to a target of $4.

The stock of Chesapeake Energy Corporation (NYSE:CHK) was last seen losing around 0.47 percent in the premarket session, thus heading toward the opening market of $25.49 or thereabout.

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