PANDORA STOCK RALLIES STRONGLY RIGHT TO RESISTANCE – CAN IT BREAK THROUGH?

Volatile Pandora shares have been either rallying or declining 7% - 8% 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? Recap of our August 26th piece on Pandora Media, Inc.

… • The bulls loved Pandora's balance sheet and speculative growth prospects. • The bears latch 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. Recent fundamental developments in Pandora-world… Since our last look at Pandora, the company announced that it inked a licensing deal with BMG Music – which lifted the stock over 5 percent on September 11th. Additionally, the stock got over a 6 percent boost yesterday from an upbeat report from the JP Morgan analyst covering the stock. What are the charts telling us 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. Overall… Pandora bears are likely to remain staunch in their negativity towards Pandora unless the bullish crowd can force the price up through the key resistance at $28.13. Let's see if there are enough deals that can be signed or analysts that can re-iterate their “buys” on the stock to get that breakout done.