CPLP has dropped off over $2.50 a share after they paid their dividend and then the market went down, exaggerating the usual post dividend revaluing of the stock.
Now is the time to
start thinking about
buying CPLP again.
At the current price it’s paying over 10% dividend. But my target will be to make between $1 and $2 per share profit, within 60 days, or keep it for the dividend if the market doesn’t recover again over the summer.
Look for these technical buy signals
This is the chart from 2010, where I traded the cycles in CPLP due to it's big quarterly payouts. The technical buy signal I’ll be looking for is the purple and green lines to get much closer together. You can see this happened at $8.20 back in August 2010, then $8.40 in November 2010. You can see when green crosses above purples, that’s when the uptrend starts. We don’t even think about buying until the candles are completely inside of the lower bollinger band, and there is no hurry, CPLP usually trades up and down a bit before people realize that a 10% dividend is pretty good and that the global economy still needs supertankers to carry oil around the place.
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