PLPL Bullish Pre-Breakout Oppertunity
Published: Wed, 06/19/13
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Morning,
I've been watching Plandai Biotechnology, Inc (PLPL) for a little while now and all signs are bullish. Hence today's recommendation for you to take a look.
PLPL is a growth stage Company that operates in the fast growing (and profitable) nutraceutical industry. Valuing PLPL is difficult, but the Company is forecasting some very handsome revenues (and earnings) over the next several years and beyond. And the Company appears to have some substantial and important land holdings in its asset base.
Importantly, the Company is issuing a lot of good press that investors love to see. Go to http://finance.yahoo.com/q?s=plpl&ql=1 if you want to read some PR they have released lately.
You can read more about the Company at their website www.plandaibiotech.com
Now, what we really like as traders, is the chart.
 In case you haven't noticed, or are new to trading, this is what we call a momentum breakout.
Don't be scared off by the large run-up its already had. Such breakouts usually occur in three or four waves. The final run(s) higher is usually the biggest. As you can see, PLPL has had two waves higher, and is now consolidating, as buyers accumulate.
I am anticipating another leg higher very soon with a breakout from this wedge formation.
Primary target is its former high of $0.62. Secondary target is anybody's guess. Momentum plays that break through former highs can often run big. Just look at the LOTED or BIZM, or even TSLA charts - these things run hard and fast.
And as mentioned, the later runs high are usually the biggest - where it goes parabolic. Buyers are literally tripping over themselves to get in at all costs.
The key is to get in before the move. And the range PLPL is trading in is a nice area.
There is strong support around $0.48-0.50, about where its trading now - so the risk is very low, and obviously the upside is high.
So while the market decides how it wants to react to the Fed, PLPL is one play that I think will work irrespective of what the market is doing.
Take care and all the best.
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