CHK has risen from 21.50 to 28.30, approximately 31.6% in 7 trading days. I was long from 21.5, and sold at 25, so this post comes w/that bit of a bias. (and the fact that I am a fan of Nat. gas in general, which is a paradox onto itself)
CHK is very overbought, seriously overbought.
Then there is the weekly chart, which suggest a resistance area from before the collapse.
Because of the extreme condition, I am playing the consolidation that needs to take place. This will be a very short trade, as I am fundamentally bullish on nat. gas, and look to cover on that consolidation. (At that point, I will most likely go long CHK again.)
Could pull back to mid 25, or even 23 (if looking at the 20 SMA from the weekly chart)
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