Make no mistake—we’re still very much in a full-on bull market, but there’s a chance you’re trying to squeeze profits out of stocks that aren’t moving any higher.
That’s what I’m here for. This $8 stock used to trade above $40, and I’ve just seen signals that it could be heading back up there very quickly.
You won’t want to miss this stock’s rise to glory…
When you hear the name Pandora (P), you probably think back to the days before Spotify was around.
But Spotify hasn’t completely crowded Pandora out of the music streaming market.
In fact, as of recently, investors have started flocking back to Pandora after a string of crucial announcements.
Last week, Pandora hit an all-time low of $6.76 per share. But that was before investors started to factor in two massive pieces of news:
- Sirius XM (SIRI) has announced that it’s investing $480 million in Pandora, which gives Sirius XM a 16% stake in the company.
- Pandora’s CEO announced that he’s stepping down, which means there’s room for some fresh eyes to revise and restructure the company
The combination of these announcements pushed Pandora stock up 28%, and has signaled a strong comeback for the down-but-not-out internet radio company.
But this fundamental news alone wouldn’t have me pointing you in Pandora’s direction.
As you already know, I need the chart to align in order to fully back a stock—and Pandora’s stock chart looks like it’s about to align beautifully.
In early 2014, Pandora hit an all-time high of $40.44, and I firmly believe that it’s heading back that way very soon.
Take a look at the chart below:
The blue line on the chart is the 40-week moving average.
Now, you may notice that when Pandora breached that moving average at the end of 2012 around $10 it took off very quickly.
During mid-2014 as the stock was trapped underneath the moving average, it seemed to struggle to catch its breath before plummeting to the recent all-time low.
Pairing the company’s recent announcements and my technical analysis of the stock’s chart, I’d say that we could be seeing some very positive action very soon.
If Pandora crosses above its 40-week moving average with strong buying volume, there could be a perfect buying opportunity provided to us.
I’ll be keeping a close eye on this one, and if you keep an eye out for an invitation to our premium stock recommendation service Penny Stock Launchpad, you could be seeing some massive Pandora gains on the horizon.
