Ecopetrol is a Colombia based oil and gas exploration company. $EC is up 94% ytd and it has been a regular member of the StockTwits 50 list. As the market averages were moving in a range during the summer, $EC broke out to a new all time high in July. Since then it has been finding support above its rising 20-day MA, which is indicative of strong institutional interest. It is certainly worth it to pay attention to stocks with high relative strength.
The stock has recently accelerated its upside move and it looks like the 10-day might be the new relevant MA. $EC is within 1% of its all time high price level. Such acceleration in slope is usually a sign of increased risk appetite or the beginning of a blow off top. I am willing to take the risk here and go long with a stop at 45.50.
