Working at Night

Given the correction in crude oil and many energy names in recent weeks, it would indeed be a stealth move for the natural gas-related exploration plays we have been tracking here and especially for Members to have them break out now. 

The likes of Chesapeake, among a few others, have made notable technical improvements of late, and the CHK daily chart, updated below, illustrates as much with its strength this morning in the face of down 200-point Dow open. In effect, to see them break higher would amount to them working at night while the rest of the energy complex is sleeping. 

However, before we get too carried away, we would like to see CHK, for example, sustain a move back towards $5 which does not face rejection of any kind. The daily chart is attractive and improving but is perhaps not fully out of the woods yet, either. 

Similar comments apply to RRC and SWN.