Pandora Tests Resistance Ahead Of Earnings

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Pandora P shares are trading higher by $0.80 at $18.20 in Wednesday's session. The catalyst for the rally may a report released this week by JP Morgan, reiterating it Overweight rating on the issue. The report focused on its strong ad revenue growth, improving industry relationships, increasing in-car usage and possible international expansion. After a slightly higher opening, it found support at Tuesday's close ($17.40) and has rallied to $18.33 so far in today's session. That level has been a major area of resistance for the issue for over the past month.. Former rallies were capped at $18.36 on December 24 and $18.35 on December 29. The company will announce earnings after-hours on Thursday and Street estimates stand $0.18 per share, which would represent it best showing over the last year.