EC daily April 1st
EC (Ecopetrol S.A.) will trigger a long entry above 15.80 with a suggested stop below 14.86 (for both price targets, T1 & T2).
With a current dividend yield of 15.30%, EC will be added as a trade setup in the Growth & Income Trade Ideas category. With the recent drop in crude oil prices, I would not be surprised to see EC cut its dividend in the near future but even a 66% reduction in the dividend would still provide an attractive yield of about 5% based on current prices. EC may or may not need one more thrust down within the wedge (alt. scenario) & if so, the entry criteria may be revised.
Growth & Income Trade ideas are longer-term swing trade or investment candidates expected to generate an above average dividend yield and capital appreciation. As with the Long-term Trade Ideas, the expected holding period for the Growth & Income Trade Ideas typically ranges from at least several months to a year or more.