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Oil Stock About To Go Into Hyperdrive

Plains All American Pipeline broke above the resistance line of its bull channel


Plains All American Pipeline (NYSE:PAA) — This limited partnership transports, stores and markets crude oil. It is a chief beneficiary of increasing American crude oil production and would directly benefit from an approval of the Keystone XL Pipeline Project. The company is an aggressive buyer of crude oil terminals and is building others.

Bank of America Merrill Lynch recently reiterated its “buy” rating on PAA and raised its price target. PAA pays an annual dividend of $2.25 for a 4.4% yield.

The stock broke from a bull channel several weeks ago and is under heavy accumulation. Stocks that break above the resistance line of a bull channel often accelerate into hyperdrive. Thus, the trading target for PAA is $60.

PAA Chart
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Trade of the Day Chart Key


Article printed from InvestorPlace Media,

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