Chesapeake Energy Underperforming Year-to-Date

Shares of CHK have been consolidating in a rectangle formation since early November.

Today’s chart is of Chesapeake Energy (NYSE:CHK), which engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States.

Click to enlarge

What I Am Looking At:

Energy sector slightly underperforming S&P 500 (INDEXSP:.INX) year-to-date.
CHK also underperforming year-to-date (+1%) and year-over-year, down nearly 25%.
Monthly trend remains down.
Shares have been consolidating in a rectangle formation since early November, trading between $16 and $18.
A number of overhead moving averages just above $18 could provide resistance.
Past few days have seen call adds at the 17.5-strike price which could pressure shares lower.
Call buying has been dominant during the past 10 days as the 10-day call/put ratio is 3.44.
Peak put open interest for the January series resides at the 15-strike, a move below support could be attracted to this level.
Short interest is near multi-year highs as 16% of the float is sold short.
Nearly 8 days for shorts to cover themselves.
17 out of 26 analysts who cover CHK rate the shares a “hold.”
Ex-dividend date is January 11, 2013.

This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research.

Below, find some more great content from Schaeffer's Investment Research:

Daily Game Plan – The Top Is In?

Bulls Reemerge on Alcoa Report; Dow Jones Industrial Average Looks Higher

Chartist Corner: Top Charts for 2013

Twitter: @schaeffers