Ecopetrol: A bullish outlook

March 22, 2018 08:00 AM

Ecopetrol SA (EC) is an energy firm that is up 20% year-to-date, 86% over the last 12-months and sports compellingly bullish technicals after testing support at the 50-day simple moving average following the early February sell-off. Earnings have been mixed with gains of 2.1% and 6.4% during the last two quarters. The stock more than doubled in value during the last six months and outperformed the Energy Select Sector SPDR (XLE) following the February sell-off. The round number theory has come into play with just one close above $20 on Jan. 24. Enter EC on a pullback to $17.25. There is near-term support at the 50-day SMA.    

About the Author

Doug Busch has been trading the U.S. equity markets for two decades using traditional technical analysis, as a trend follower, with an emphasis with Japanese candlesticks. @ChartSmarter