Chesapeake Energy is a extremely weak fundamentally with a high PEG ratio. It is setting up with a Bear Flag that does not rise above the 50% fibonacci retracement level. A breakdown below $18.20 would trigger a short position.
Instead of breaking down CHK broke out, using top red line as support. What your study says as next direction? Thanks for any input.
d-seven
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Hi Greenplay,
Thanks for the comment. Triangle bias is usually omni-directional until a decisive move is made. This is why we typically wait for confirmation before breakout/breakdown.