Pandora Media Inc : Strong downward movement
November 08, 2012 at 07:52 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
US$8.24 |
US$0 |
US$8.1 |
+100% |
---|
Pandora Media is experiencing a downward trend that could push it toward USD 7, corresponding to a mid-term support.
Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.
Graphically, we can see that the stock is in a bearish trend with decreasing moving averages, which serve as resistance. The security is moving towards USD 7 in daily data, the next support area.
Therefore, we could take a short position to benefit from the downward trend. The security could quickly go to the next important level located at USD 7 in case of breakdown of the USD 7.97 threshold. A stop loss will be placed above the USD 7.97 support.
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