Chesapeake Energy Technical Analysis (NYSE:CHK)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. Just by looking at the Chesapeake Energy stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the CHK stock chart which creates a trading signal.
See Chesapeake Energy bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Chesapeake Energy stock analysis that does not care for the fair value of a company but uses price and volume data only.
Chesapeake Energy Moving Average
Moving averages help predict the price direction of CHK stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $5.09 is above the last closing price of $4.67 and the 50 day moving average of $4.62 is below the last closing price of $4.67. The 10 and 20 day periods can predict short term moving average trends.
Chesapeake Energy Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Chesapeake Energy. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Chesapeake Energy bollinger bands show that the stock price is $4.67, upper band is 5.5, lower band is 4.69, and the average is 5.1.
Chesapeake Energy Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Chesapeake Energy MACD indicator is below 0 indicating a bearish trend.
Chesapeake Energy Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. If the RSI of CHK stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.