Chesapeake Energy Corporation stock has bounced into a 10-month trendline that, if broken, may signal the end of the long downtrend and the start of a secular uptrend that could double the stock’s price in the coming months. That is good news for beaten-down shareholders who have watched in pain while the lowly energy supplier posted a string of 52-week lows, held down by the weakest natural gas market in generations.
The stock bottomed out with the energy sector in the first quarter of 2016, but limited progress into December discouraged buying interest, triggering a slow-motion decline that found support at the May 2016 swing low in August. Persistent selling pressure has denied the long-term buy signals needed to indicate a new uptrend, even though the stock is trading well above last year’s low. (For a refresher, check out: Natural Gas Industry: An Investment Guide.)
Chesapeake Energy shares reached resistance at a 10-month trendline and could break out into a new uptrend. …read more
Read more here: Chesapeake Energy Stock Could Enter New Uptrend