Candlesticks - Bearish Engulfing Chesapeake Energy

New York, July 25th (TradersHuddle.com) - Shares of Chesapeake Energy Corporation (NYSE:CHK) ended the trading session lower by $0.39 or -2.24% from its previous close. Chesapeake's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Chesapeake Energy Corporation (NYSE:CHK) produces oil and natural gas. The Company's operations are focused on discovering, developing and acquiring conventional and unconventional natural gas reserves onshore in the United States.

Chesapeake's current stock range is determined by calculated support defined at $18.30 and by the resistance level at $19.39, which should be used by traders planning their next move.

If traders want to establish a position in Chesapeake Energy, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Chesapeake Energy for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration:

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