Is Pandora (P) music to your ears? (September 19, 2015)
I want to talk about Pandora ( NYSE:P ). This stock is poised to move higher. It’s already had a big move. I know there have been some bearish calls out there on this stock, for reasons that are not apparent to me. We’re looking here at resistance. The stock had been in a downtrend, up, had a correction, lower low, which is key. Then it had a massive high volume move to the upside and hasn’t come back to test that, unless you want to call this a test.
The bottom line is, this was all to the sellers, the bears were in charge. We saw massive distribution days here, big, massive volume down. Well now we get a high volume up day, back up at resistance, a higher low. Volume was a little bit heavier than average but not like these here. The selling pressure has been pretty tepid here; the selling pressure has been tepid, the stock now moves up, and now it’s breaking through this resistance level. It’s breaking out, it’s above the 200, it’s above the 50, and in fact the 50 has crossed over and is now trending higher.
What I’ve been describing to you is a trend reversal. I think you’ve got to be long Pandora ( NYSE:P ). It had been in a downtrend and then you can draw a box just basically around this level here, as one big high wide base from $14.00 up to $19.00 or $20.00, and now this stock is moving to the upside. So I think this is a stock that you want to be here. You can own it, scale in to it because this thing could fall 10 or 15 percent and still really be in consolidation. In other words nothing wrong with the stock it’s just still in a channel. Don’t take your eyes off of Pandora ( NYSE:P ), because it works.
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