CHK Follow Up

You may remember this one as it is one divergence we were actually able to confirm with real numbers and dates on Carl Icahn's accumulation. I posted CHK as a trade idea on May 24th as I had been following the trade for a member, here's that post when CHK was at $15.59

Then we got our hands on Carl Icahn's actual accumulation and were able to verify the 3C positive divergences showing accumulation in CHK. I couldn't find the post here, this is the one from Trade-Guild.net 


This is a great post to read if you are new to 3C.


So far CHK is up 16+% and above where Icahn accumulation first started.

CHK may provide a pullback opportunity to consider starting a new position or adding to an existing one.

 CHK is trying to break out of a base area today, it's also near that head fake breakout gap which may be where it will provide an entry.

 The X-over custom Screen with moving averages on price and a custom indicator in the middle with RSI at the bottom hasn't given a single false signal, it is now 2/3 signals on the long side and the 3rd looks to be coming soon. The pullback area usually is to the 10-day yellow moving average on the first pullback after a new signal, so I'd set some alerts around that area.

 My Custom Trend Channel held the entire downtrend except that volatile head fake move, it is now in long mode with a closing stop at or below $15.64

 The 60 min chart shows the distribution at CHK's top, accumulation in April (this is what I keep mentioning when talking about the positive divergences market wide starting May 7th), Icahn accumulated there and then at lower prices up to May 24th-see the links above for confirmation. Currently the 60 min chart is leading positive, very strong.

 The 15 min chart shows that same accumulation ara and then lower prices and more accumulation-almost exactly like the May 7th signal across the market. The yellow area is gap resistance and there's a negative divergence suggesting CHK will pullback, which would make for an interesting long opportunity. LET THE TRADE COME TO YOU.

THE 5 MIN CHART SEEMS TO CONFIRMA THE SAME.

This may be similar to what we may see in the market, we'll have to wait it out, but I'll certainly be looking at CHK on a pullback, I'd set some price alerts.