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Trade of the Day: Ecopetrol (EC)

Try Ecopetrol (EC) for a prime summer trade


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 (EC) is the largest energy-producer in Colombia, with units producing and refining crude oil, natural gas and coal.Shares have been crushed the past six months, along with most Latin American stocks. The iShares S&P Latin America 40 Index ETF (ILF), in fact, is down over 20% this year. But Ecopetrol could be a light in the dark, as its shares are now basing and moving higher. This is a stock that tends to do well in the summer.

Shares are consolidating the recent advance, giving you a good buy opportunity. The median analyst estimate for EC is $50, so I’m erring a bit on the side of caution and keeping my target a bit below that level.

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Be aware that this stock reports earnings after the close today, so if that kind of volatility is a concern for you, you may want to hold on to this idea for a few days before acting.

Recommendation: Buy EC under $46.10 for a $49.50 target.

InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage, which aims to capture profits of 15% to 40% and often as much as 100% to 200% in less than 90 days. 

Professional traders and hedge funds make huge profits off volatility.  Now, Jon’s service CounterPoint Options levels the playing field with the first service geared towards helping individual traders make steady, consistent profits with the VIX.  Get more information on Trader’s Advantage and CounterPoint Options today.

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