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Trade #3 –
Chesapeake Energy (CHK)By Chris Johnson and Jon Lewis
The end of summer doesn’t just mean the beginning of football season; it also marks the beginning of the home heating season. Natural gas and oil
companies have seen a drop in prices as the crowd ran away from commodity stocks in 2009. But with furnaces due to start kicking on soon after Labor
Day, companies in position to benefit from a rise in natural gas prices should offer great winter trading opportunities.Among the better positioned companies is Chesapeake Energy (CHK), which has historically found profit
potential among a rising energy pricing and demand environment for natural gas.Technically, the stock is up more than 40% this year and is riding along its ascending 20-week moving average. Look for this trend to continue as
demand for gas heats up after Labor Day.
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