Energy has been trying to reassert itself lately, but overall it is still a laggard. The XLE is lower 5 of the last 8 weeks and is down 15% from most recent 52 week highs as the tug of war between bulls and bears is ongoing at its 200 day SMA. The ETF is dominated by XOM and CVX, but underneath the surface their are some names that are behaving bullishly. Today we look at an international play from Colombia, EC, and how long term investors could have been adding on STRENGTH, not weakness, over the last few months.

This is how EC was presented precisely in our Thursday 12/14/17 Game Plan. The first thing that sticks out is how the round number theory, with the ten figure came into play. The pattern was nearly two years long and the bigger the base the greater the space.

Stocks that can be bought after recent breakouts above WEEKLY flag bases are ECEC is a Colombian energy play higher by 41% YTD and over the last one year period and sports a dividend yield of 1.2%. Earnings are mixed with gains of 2.1 and 6.4% on 8/9 and 5/12 and losses of 3.2 and .8% on 11/8 and 3/6. The stock is higher 15 of the last 17 weeks (week ending 9/29 lost just 6 pennies) and by 5.1% this week thus far. It broke above a long bullish ascending triangle nearly 2 years in length that aligned with very round 10 number (weeks ending 4/22-5/6/16, 6/10 and 6/24/16, 5/9/17 and 10/20/17 were above 10 intraweek but recorded no CLOSES above) the week ending 10/27 and this week broke above a bull flag trigger of 12.25. Enter EC at 12.50. (We wrote about this name in our Monday 10/30/17 Game Plan as it busted above a cup with handle trigger just above very round 10 number).

Trigger EC 12.50.  Stop 11.55.

This is how EC was presented in our Tuesday 2/20 Game Plan. Very impressive was how the stock, any stock for that matter, held its 50 day SMA during the recent overall market pressure. Add to that the name is in a lagging group and that is a nice recipe for a leader to continue higher in 2018.

About as clean as an energy chart you will find and if this space finds footing expect this name to lead. EC is an energy name higher by 20% YTD and 86% over the last one year period and sports a dividend yield of .9%. Earnings have been mixed with gains of 2.1 and 6.4% on 8/9 and 5/2 and losses of 3.2 and .8% on 11/8 and 3/6 (it REPORTS 3/5 after the close). The stock is higher by a very solid 22 of the last 27 weeks, well more than doubling and this week jumped 4.3%, firmly outshining the XLE higher by 2.1%. The round number theory has come into play with just one CLOSE above the 20 figure of 1/24 and it has since faded and is now 15% off most recent 52 week highs. Enter EC on a pullback at 17.25 after its initial touch of the rising 50 day SMA after a break above a bull flag trigger of 12 last December.

Trigger EC 17.25.  Stop 16.

Below is the present situation with EC. It vastly outperformed the XLE this week rising 5.2% this week as the ETF FELL .8%. Not surprisingly the round number comes into play as it attempts to rid itself off teenager status. It has recorded just one CLOSE above 20 on 1/24 up almost 6% in well more than double average daily volume. Add to now with a buy stop above a 20.65 trigger.

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Energy has been trying to reassert itself lately, but overall it is still a laggard. The XLE is lower 5 of the last 8 weeks and is down 15% from most recent 52 week highs as the tug of war between bulls and bears is ongoing at its 200 day SMA. The ETF is dominated by XOM and CVX, but underneath the surface their are some names that are behaving bullishly. Today we look at an international play from Colombia, EC, and how long term investors could have been adding on STRENGTH, not weakness, over the last few months.

This is how EC was presented precisely in our Thursday 12/14/17 Game Plan. The first thing that sticks out is how the round number theory, with the ten figure came into play. The pattern was nearly two years long and the bigger the base the greater the space.

Stocks that can be bought after recent breakouts above WEEKLY flag bases are ECEC is a Colombian energy play higher by 41% YTD and over the last one year period and sports a dividend yield of 1.2%. Earnings are mixed with gains of 2.1 and 6.4% on 8/9 and 5/12 and losses of 3.2 and .8% on 11/8 and 3/6. The stock is higher 15 of the last 17 weeks (week ending 9/29 lost just 6 pennies) and by 5.1% this week thus far. It broke above a long bullish ascending triangle nearly 2 years in length that aligned with very round 10 number (weeks ending 4/22-5/6/16, 6/10 and 6/24/16, 5/9/17 and 10/20/17 were above 10 intraweek but recorded no CLOSES above) the week ending 10/27 and this week broke above a bull flag trigger of 12.25. Enter EC at 12.50. (We wrote about this name in our Monday 10/30/17 Game Plan as it busted above a cup with handle trigger just above very round 10 number).

Trigger EC 12.50.  Stop 11.55.

This is how EC was presented in our Tuesday 2/20 Game Plan. Very impressive was how the stock, any stock for that matter, held its 50 day SMA during the recent overall market pressure. Add to that the name is in a lagging group and that is a nice recipe for a leader to continue higher in 2018.

About as clean as an energy chart you will find and if this space finds footing expect this name to lead. EC is an energy name higher by 20% YTD and 86% over the last one year period and sports a dividend yield of .9%. Earnings have been mixed with gains of 2.1 and 6.4% on 8/9 and 5/2 and losses of 3.2 and .8% on 11/8 and 3/6 (it REPORTS 3/5 after the close). The stock is higher by a very solid 22 of the last 27 weeks, well more than doubling and this week jumped 4.3%, firmly outshining the XLE higher by 2.1%. The round number theory has come into play with just one CLOSE above the 20 figure of 1/24 and it has since faded and is now 15% off most recent 52 week highs. Enter EC on a pullback at 17.25 after its initial touch of the rising 50 day SMA after a break above a bull flag trigger of 12 last December.

Trigger EC 17.25.  Stop 16.

Below is the present situation with EC. It vastly outperformed the XLE this week rising 5.2% this week as the ETF FELL .8%. Not surprisingly the round number comes into play as it attempts to rid itself off teenager status. It has recorded just one CLOSE above 20 on 1/24 up almost 6% in well more than double average daily volume. Add to now with a buy stop above a 20.65 trigger.

If you liked what you read why not take a 2 week FREE trial at www.chartsmarter.com.