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Today’s chart is of Chesapeake Energy (CHK) which engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States.
Ticker: Chesapeake Energy (CHK)
What I Am Looking At:
- Energy sector slightly underperforming S&P 500 year-to-date
- CHK also underperforming year-to-date (+1 percent) and year-over-year, down nearly 25 percent
- Monthly trend remains down
- Shares have been consolidating in a rectangle formation since early November, trading between $16 and $18
- A number of overhead moving averages just above $18 could provide resistance
- Past few days have seen call adds at the 17.5-strike price which could pressure shares lower
- Call buying has been dominant during the past 10 days as the 10-day call/put ratio is 3.44
- Peak put open interest for the January series resides at the 15-strike, a move below support could be attracted to this level
- Short interest is near multi-year highs as 16 percent of the float is sold short
- Nearly 8 days for shorts to cover themselves
- 17 out of 26 analysts who cover CHK rate the shares a “hold”
- Ex-dividend date is 1/11/13