The SpaceX IPO is coming closer and closer. That will create a ripple effect through out the entire sector.

And Planet Labs is one of the more interesting names in this space. Planet Labs operates a fleet of small satellites that capture daily images of the Earth and turn them into data used to track changes.

The stock has been on a picture perfect advance. This is one to bookmark. The moves have been pretty linear. Every breakout is followed by a tight consolidation. It rallies, then pauses, then ralliesagain. This is exactly what leading stocks do.

The Setup:

• Breakout of tight consolidation

• Satellite data demand is exploding with massive backlogs