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BERRY PLASTICS GROUP – Buy the break out above historical top

Berry Plastics Uptrend Momentum

Berry Plastics Group, Inc. – NYSE: $BERY –  is a plastic converting company engaged in manufacturing and marketing packaging systems, protective solutions, tapes and adhesives.

The stock price is in a major uptrend with a massive momentum and an extremely positive and rising relative strength even when compared to the NASDAQ technology index.

2017-10-05_BERY

BERY massive uptrend – Buy the breakout above historical top.

Take-over talks in the plastic packaging sector add more power to the trend

The technical configuration of the price chart is by itself supportive enough for the BERY price to break higher above its historical top from beginning of June at $58.95 but since takeover talks are taking place in the plastic packaging sector as it was recently reported by Bloomberg and although BERY is not directly concerned this constitutes supplemental power to propel the price higher.

Strategy

  • Buy the breakout above $59 with a triggering range order – e.g. $59.05 to $59.15 – as we would like to avoid being executed in case of a major price gap higher if  BERY becomes acquired by a competitor, right?
  • Immediately  place a stop-loss order below the recent bottoming pattern of the ast few weeks and slightly below $54.
  • Target the top of the channel at $63 as a minimum objective.
  • Profit/Loss ratio is <1:1 but just in case the price stops at the upper channel boundary, and the stop loss could be move to breakeven as soon as the price has moved higher in the $61 price area.
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