P (Pandora Media) Chart- Jan 6th
P (Pandora Media Inc.) made a strong gap higher at the open today and is currently backtesting the minor uptrend line from below. The Pandora short trade was just updated on Friday evening as an objective add-on as the stock closed just below the recently broken ascending channel. Fortunately, that post was made late Friday night, well after the market and after-hours session had close and therefore, too late to do any damage by allowing anyone to initiate or add to an existing position before the gap higher at the open today.
While one could view the current move higher, which is now backtesting that resistance level (the previous minor uptrend line) as an objective spot to add to or initiate a position, the fact that Pandora has reclaimed the primary uptrend channel should be construed as a bullish technical event. Pandora was originally mentioned as an objective short entry while trading at 29.71 back on Nov 19th, putting the trade at a loss of just over 1 point as of now. (T1 was hit on Dec 18th for a 12.3% gain). Based on my preferred target of T3 at 21.85 (nearly 8 points below the entry price) a stop over the 32 area would give this trade a R/R of about 3.5:1. Those targeting T2 (23.09) or those with a lower cost basis might consider a lower stop level. Click here to view the live chart of P (Pandora Media).