The Truth About Pandora
- Posted by Greg Harmon
- on October 23rd, 2013
Whether you use Pandora ($P), Grooveshark or Spotify, or if you are a disciple of the fruit of the tree and waiting for Apple radio, you have an opinion on Pandora. Mine is that the whichever music sharing/radio platform gets bought by a deep pockets backer with marketing know how will be the winner of the space. But that is not the truth that I promised you. it is relevant because it plays into the sentiment that is part of what drives the chart of Pandora stock. That price seems to be stuck and causing all sorts of stories to push around about why. But a look at the price action in the weekly chart gives a much simpler explanation. The stock price is battling around an expanding axis centered on the high price from the IPO day. There is a battle brewing between sellers that have regretted not selling at 26 the shares that they got in the IPO at 16
and the investors that see a better future. This kind of thing happens when the media starts saying things like new All Time High or Record High (it has always bothered my how a stock price can have a record anything). The price action creating an expanding top will then get bearish traders and investors excited. Just the name, expanding top, shows a bias for a roll over and fall in price. But it should really be called an expanding indecision zone. Because it can break to the upside as well. So what is the truth about Pandora? It is in no-man’s land until it breaks this zone one way or the other. Be prepared to buy it on a break to the upside, and to sell it or sell it short on a break to the downside. But for now, just watch it and listen to it…..or its competitors.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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