Good spot to long CHK if you are a Wyckoff student. This accumulation trading range has produced significant cause with conservative projected target of $24.
9 buying tests:
1. Downside price objective accomplished? Yes 2. Preliminary support, selling climax, secondary test? Yes 3. Activity bullish (volume increases on rallies and decreases on reactions)? Yes 4. Downward stride broken (that is, supply line penetrated)? Yes 5. Higher supports? Yes, 1 6. Higher tops? Yes, 1 7. Stock stronger than the market? Yes, vs XOP, XLE, SPN 8. Base forming (horizontal price line)? Yes 9. Estimated upside profit potential is at least three times the possible loss? Yes