support level, page-7

The price in PLA is grinding lower on reasonable volume - this indicates 2 things - people are bottom picking with tight stops so they are churning in and out between (the now)38 - 41 level (as I am). Also, those who bought much higher and can't take the pain are now probably reducing positions / selling out at these prices, will help form a solid low cost base with (potentially)less selling pressure on the eventual way back up - this 'flush' and consolidation is good, as it creates a critical mass of holders at a lower cost base, establishing a solid support level, and hopefully a concentration of the 'faithful' or longer term holders, a majority of who should resist selling on any short term rally.

Note as mentioned, as the markets heads lower, PLA will likely be dragged down with it. Given the usual media doom and gloom hype, the market is talking itself towards the March Japanese crises low of 4500 - circa another 3% from yesterday, close, so I think there may be a general absence of buyers in the overall market, on the expectation of this XJO level being is reached over the coming weeks / month. There should be strong market support here, but cautiousness will avail and volume buyers will not return until a change in trend is confirmed. Note this in the absence of any stock or industry specific news for PLA.

Cheers