Chesapeak Energy (CHK) has been trading sideways since the second half of 2016, and has been a bit bearish since the end of 2016. As we can see on the daily chart below, price essentially found resistance just above 8.00, and support right around 5.00. Chespeake Energy (CHK) Daily Chart(click to enlarge)Bearish Bias:- The daily chart shows a market that was initially bullish in 2016, but price flattened by the end of the year. - After failing to clear above 8.00 twice, price started to show some bearish bias heading into 2017. - Price started to hold under the 200- and 100-day simple moving averages (SMAs) since April. - Also in April, instead of heading back to 8.00, price retreated from 6.50 to test the support around 5.00. This shows bearish bias and puts pressure on the consolidation support.- If we look at the weekly chart below, we can see that CHK has been sharply bearish since 2014.- The price action in 2016 appeared to be a consolidation, and the price action in 2017 appears to be a consolidation breakout. - Thus, the bearish bias is in both the medium and long-term. Breakout Targets:- I would not rely on the 5.00 support area. A break above 6.00 will be needed to convince me the support is strong. - If price does break below 4.90, the 2016 low around 1.50 would open up as the most aggressive bearish target for 2017/2018. - However, the 3.50-3.60 area contain a common support/resistance pivot going back to 2015.- We should anticipate the bearish breakout, then if there is a pullback, anticipate resistance around 5.00 up to 5.50. - If there is indeed resistance there, we can have more confidence in the 3.50-3.60 target.Chesapeake Energy (CHK) Weekly Chart(click to enlarge)