Elliott Wave View: Further Weakness in Chesapeake Energy Corp

Short Term Elliott Wave View on Chesapeake Energy Corp (ticker: CHK) shows 5 waves impulsive Elliott Wave decline from November 5 high. The bounce to $1.59 in the stock ended wave (2) as a double three Elliott Wave structure. On the chart below, we can see wave X of this double three ended at $1.33 and wave Y ended at $1.59. Down from 1.59, the decline has resumed with wave 1 ended at $1.28 as a 5 waves impulse in lesser degree. Bounce to wave 2 ended at $1.33. The stock then extended lower in wave 3 towards $0.97. Above from there it ended wave 4 at 1.09 and below there it ended wave 5 of (3) at 0.79 low.

Wave (4) bounce is currently in progress. As far as the rally fails below 1.59, expect more downside in the stock. Potential target to the downside is 100% Fibonacci extension from September 16 high which comes at 0.45 – 0.67.