CHK (Chesapeake Energy Corp) offers an objective long entry on this breakout above the downtrend line + 1.78 R level & will be added as an Active Swing Trade around current levels. As the company reports earnings next week on Aug 6th, I’m only listing one official target, T1 at 2.04 although the stock has the potential to rally up to the 2.57ish level although by my guesstimation if it does, that will happen after the company reports earnings.
As of now, I’m just looking to play a quick swing trade as I’m seeing strong momentum in the Oil & Gas E&P sector (XES is the ETF for those that want a “safer”, more diversified proxy for trading the sector). Ideally, T1 will be hit before the company reports, assuming the trade is not stopped out before then. The suggested stop (if targeting T1) is 1.75 (or wider, if targeting the potential but not official T2). The suggested beta-adjusted position size for this trade is 1.0. CHK was recently highlighted as an unofficial trade idea in the trading room last Thursday & again earlier today (charts below).