EcoPetrol (EC): Bullish Cup & Handle

SUMMARY

The below chart of EcoPetrol (EC) shows that from its IPO, is zinged up only to severely correctly below its IPO price! This is thus labeled as an ABC of the expanded type. What is uncann is the rounded price formation which likely will lead to a Cup & Handle pattern.

The subwaves of red B are labeled as white abc; and the subwaves of red C are shown as impulse white. Once the ABC was placed, price went sideways to establish the basin and then started impulsing as shown by the blue waves. IF the ABC correction is complete, then this first round of impulse move up should be a very good bullish indicator.

Could the severe C wave downturn been projected? Yes, as the below chart shows, the Head & Shoulders Top pattern was quite uncanny. The LS, H and RS are labeled and the Neckline drawn. The purple line provides the projected minimum run and could have served as an early warning indicator to get out.

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