After last Friday’s 28.8% pop from penny stock Procera Networks Inc. (PKT), I was fully prepared to suggest just sitting back and letting the profit-taking happen before stepping in again. We love the company, but there’s no point in fighting a battle that you’re just not going to win in the short run, but you’re sure you’re going to win in the long run.

Well, as it turns out, I was worried for nothing. Procera not only didn’t retreat much, but it appears to have resumed its bullish tear.

The chart below says it all.

After peaking at 92 cents on Friday, PKT slid back to a low of 80 cents on Monday and Tuesday. Apparently, that was enough to burn off any unhealthy euphoria. The stock’s up sharply again today (on strong volume no less), and we’ve already seen a new multi-month high of 94 cents met.

Normally I’d recommend waiting for a good pullback if you missed the first entry opportunity. This time though, I think we’ve seen all the pullback we’re going to see. If you want in, the risk/reward relationship says you can go ahead and move in. That’s still not permission to get sloppy though - continue to use tight stops.

By the way, PKT crossed above its 200 day moving average (green) last Friday for the first time since August; today’s the second time we’ve seen it since then. Though an arbitrary event, lots of traders look for that particular crossover as a buy signal. So, the sheer strength today could be enough to garner more attention by tomorrow.

The 200 day moving average is currently at $0.887, just so you know.

If you missed the first look at Procera, check it out here. It’s a pretty interesting story, and explains all the recent interest. You’ll also see why it’s undervalued at its current price.

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