Investment Stock of Interest - CHK

I did a great deal of scanning this weekend, and nearly every one of the S&P 500 looks lower on the weekly and monthly time frames as the year continues. I've had a very difficult time in recent months in finding decent setups on the larger time frames for position trades and longer term buys and very few of the stocks I scanned through this weekend are even close to what I would consider to be an ideal buy. In fact, not a single one of them was one I would deem to be a low risk setup.
I do have one stock that still really stands out on the weekly and monthly time frames that I do like, but as is the case with MMM from a few weeks ago, this stock can also still hold its base and congestion for several months or more before it really gets going, so these two are things I am more comfortable accumulating coming off the lower levels within the range itself for the time being instead of take any new break to weekly highs, since those are more likely to not hold for the time being. This second stock is Chesapeake Energy Corp. (CHK).

Chesapeake Energy Corporation, an oil and natural gas exploration and production company, engages in the acquisition, exploration, and development of properties for the production of crude oil and natural gas from underground reservoirs. As many of you may recall, CHK has been on our radar since last December, when I also expressed that a longer consolidation was likely. I will continue to monitor this for additional setups within the congestion itself, as I will with MMM. Do not be surprised it it attempts to take out the lows made at the beginning of this year before it can turn back over again. FWLT on the weekly time frame early last year has a pattern similar to CHK on the monthly time frame. RVBD on the weekly into the end of last year was also the same pattern. Notice how both flushed lower before taking off. Even though FWLT and RVBD were weekly setups, the same potential exists on the monthly time frame in CHK. You can check out these comparisons in the charts displayed below. The blue arrows point to the corresponding locales on each of the stocks and show where CHK is likely at in this same pattern development. MMM is very similar.

httphttp://www.tradingfrommainstreet.com/images/positiontradeletter/PT20070806chk.gif