Pandora Media Inc Rallies Strongly To Resistance
Volatile Pandora Media Inc (NYSE: P) shares have been either rallying or declining 7 to 8 percent in brief spurts recently. With the stock trading just below resistance after a big up move, will it be able to break out this time around?
Here is a recap of Benzinga's look at Pandora in August:
- The bulls loved Pandora's balance sheet and speculative growth prospects.
- The bears latched on to Pandora's very high valuations and doubts about their ability to hit their projections on a regular basis.
- Pandora shares faced short-term resistance at $28.96 and key “line in the sand” type of resistance at $30.05. A breakout above that level would likely lead to a move up to $32.
- If resistance held up, however, the technicians noted that the downside trading in Pandora could take the stock down to $21.61, $20.35 or even $17.44.
There have been some other fundamental developments in the Pandora world.
The company announced that it inked a licensing deal with BMG Music, which lifted the stock more 5 percent on September 11. Additionally, the stock got more than a 6 percent boost Tuesday on an upbeat report from JP Morgan.
What Are The Charts Saying About Pandora?
After the most recent sharp move, this time to the upside, Pandora shares are sitting right below projected resistance at the $27.62 to $28.13 range. Technicians note that unless and until the upper edge of that resistance range is conquered, the bears have the upper hand in this battle regardless of the fundamental announcements or analysts' opinions that periodically make headlines.
Pandora bears are likely to remain staunch in their negativity toward Pandora unless the bullish crowd can force the price up through the key resistance at $28.13.
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