Why JC Parets Has Been Watching Chesapeake Energy

JC Parets is the Founder of Eagle Bay Capital and discussed why he has been paying close attention to shares of

with a "well defined" low in March which was a key Fibonacci extension. Shares of Chesapeake Energy traded at new 52-week lows of $12.45 during Thursday's trading session and were lower by more than three percent by Thursday afternoon. "Here we are just under $13 and change [during Thursday's pre-market trading session], if we can get above the March lows, I think we can get a margin squeeze," Parets said. The trading pro noted that shares of Chesapeake Energy have the third largest short interest among all companies in the S&P 500. He also noted that there are very few analysts with a Buy recommendation and he would be a buyer only if shares can trade above Wednesday's highs of around $13.45. "If we can stay above there, I'd be all over it," Parets concluded. Note: Fadel Gheit of Oppenheimer