Following the announcement of OPEC's commitment to cutting oil production in the near term, prices of oil stocks have received an added boost after experiencing stagnancy for a number of months after an impressive rebound began at the start of this year.
Chesapeake Energy is one such stock with some interesting development currently underway which could see further gains made on lost ground.
From a trending perspective there doesn't seem to be a fixed support line that would assist trader's in identifying buying areas however there are signs of upward momentum in place when observing the series' of higher highs and higher lows as shown by the circled points.
The RSI built a healthy dose of momentum leading up to the peak in prices during September but subsequently fell below the all important 50 mark that indicates the presence of buyers.
The current level is back above 50 with a recent retest and bounce amongst critical support suggesting a buyers market accelerating which could motivate traders to breakthrough $8 and upwards.
No comments :
Post a Comment