Market Overview

Pandora Media Reversal May Be In Play

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Pandora has been revolutionary in changing the way consumers listen to music, matching their tastes to similar bands/artists. But, Pandora's stock has not shown this losing half its value since it's IPO from $14 to lows of $7.50. Recently consumers and friends of mine have complained about the increased ad interference and new competition from Spotify. Allot of them have already made the switch, sighting numerous additional benefits with Spotify.

However, from a technical point of view Pandora seems to be setting up for a reversal ever since bottoming in November of 2012.

The weekly chart shows a breakout from its downtrend beginning at the IPO, and also a breakout of May/September 2012 highs at $12. The MACD has pushed above the zero line for the first time and RSI remains in bullish territory.


The daily chart shows a similar story. Price broke out over $12 on February 12th and has continued higher stalling at $13.50. Today's weakness could be viewed as profit taking and may set up another long opportunity in the near future.  Technicals paint a rosy picture for the future, but the Spotify competition needs to be taken into account. 

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Technicals Markets Trading Ideas

 

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