A couple of weeks ago, we looked at shares of Chesapeake Energy (CHK) as price slid towards a key support around 5.15. The question was whether it will respect support. Regardless of opinion, we assessed a trade at 5.50 with a stop at 4.80 and target of 6.50 and an aggressive target of 8.00.CHK Daily Chart (click to enlarge)Adjusting Conservative Target and Stop:- The daily chart shows that price cracked the support at 5.15 and even cracked 5.00. - It did bounce off of 4.88. This is a reminder that if we are playing support or resistance, we should give it some elbow space in case the market cracks the support/resistance before reversing. - In this case, we have a cracked support, but price is still rebounding. - Now, because the support was cracked, I am not as confident of the 6.50 target. Instead, there seems to be strong resistance factors around 6.00, which is a psychological level and : 1) a falling trendline 2) the 200-day simple moving average (SMA), and 3) a previous support/resistance pivot. - If price does reach 6.00, I would still hold half of the position size, in case price does break above 6.00 and pushes towards 8.00. But I would also move my stop up. It doesn't matter really where, as long as the stop out scenario still yields positive gain for the entire position size. (This is a money management/risk stop adjustment, not a "technical" or "chart-based" one). -