CHK washed out bottoming pattern

BATS:CHK   Chesapeake Energy Corporation
Comments are on the graph:

I saved this chart last week and it is turning up from the red circle support zone I had outlined for myself. I like to see the chart pattern "wash-out" stop loss orders under previous correction lows to free up a stock from short term traders. Those declines set up very reasonable risk to great reward trades.

I do like to see 3 average ranges as a first stage stop loss order and that leaves CHK with a stop down around the $21 level. That is a wide stop, but this is a volatile stock, as you can see.

Note how there is a triangle that has an apex at the $22 level. I would look at CHK if the shares fall to that level assuming the stock market is stable

By: Technical Tim, Monday April 2, 2012
12:49PM EST
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I've held onto this stock for a while (yes, rookie mistake) and my fear is that these new lows might signal a downward spiral into the abyss of near-penny stocks. gulp.
The news is now controlling this stock, not the technical analysis.
wow yea nice call, and stop proved useful. Maybe $17 to 19 might be the next area to watch?
Stop loss was hit yesterday at 21 from a 23.2 entry