A look at Pandora (P) — Still working?
Discussed in this article: Pandora Media ( $P )
I want to look at Pandora ( NYSE:P ). The stocks been down for a couple of days, they decided they’re not going to provide the type of information that they were providing before because there’s a different way for advertisers to get it, you can read about that on the web. What I like is, the stock is still above the 50-day moving average, it’s kind of drifting sideways here, these nice little moves here.
What I want you to do is, consider waiting for the stock to hit the 50-day moving average; now that can occur in a couple of different ways, the stock could actually pull back and then bounce, or the stock could drift sideways, let’s stretch this over a little bit. Here’s my operative word, patience, this is not a great time in the market to just be buy, buy, buying. There are fewer stocks that are at great entry points, a lot of them are in profit-taking mode, but this is the trend right here. So with the 50-day moving average moving higher, if the stock continues to drift sideways that’s a good thing. The stock has been trading on lower than average volume as it moves sideways after a big move within an uptrend.
This is what you want to see in stocks that you want to own, but as far as buying them the better point is at the 50-day moving average. If the stock breaks out, we’ll say above $41.00, which it’s done before, as far as these breakouts, I’m not counting this one because it’s from a squeeze, but a breakout above the last high ultimately lead to more pullbacks here. So if you get a breakout above here, I don’t think there’s as much upside momentum, I mean consider what the next catalyst is, I can’t find one, so just wait for a pullback to the fifty and I think you’re good to go.
And by the way, if it doesn’t pull back to the fifty or if it pulls back to the fifty and then continues to move lower, that’s called trading, just one of those things. So if you do buy it at the 50-day moving average make sure you have a stop just below that level. If you had a stop below the level of the 50-day moving average the last time this stock hit it, you would not have been stopped out, and you would have made some nice money. So let’s see if we can do that again on Pandora ( NYSE:P ).