CHK: Do Not Count it Out

In my last post I presented a possible long position after what appeared to be an over reaction to earnings, but I also warned with a brake of the wedge pattern we could test the lows. After gapping down the following day, CHK rallied strong and put in a bullish reversal candle and followed it up with a continuation on Friday. So far the gap down appears to have been a fake out and the possibility of getting into the $17 range remains. Two key areas of resistance is 15.50 and 16. Support at 14.70.