InvestingHaven’s research team tipped Pandora Media, symbol P, a music streaming service, some 2 months ago. Until recently this stock was literally ‘dumped and forgotten’, hated, although it was a market darling a couple of years ago. Since we tipped Pandora Media back in April the stock trades 30 pct higher. Is there more upside potential, time to buy, or is the top near?

As detailed in this article in the public domain Online Streaming Stock Pandora Flashed a BUY Signal in April of 2018. InvestingHaven’s team looked at the chart, financials and fundamentals of this company, only to conclude the following:

The two things that stand out of the chart, according to our 1/99 rule (1% of price points on a chart truly matters): the successful test of secular support early 2018 combined with the breakout attempt last week.

One note of cautiousness: the short float ratio is very high, 30% at the time of writing. It requires a lot of conviction to buy this stock with such a high short float ratio. Given momentum in the industry, decent fundamentals, great financials and an amazing chart setup we are comfortable going against this very high number of shorts.

As per InvestingHaven’s methodology based on ‘start with the chart’ it became clear that the chart setup of Pandora Media was amazingly strong: it showed one of the most powerful setups. With strong financials and fundamentals it had to become a winner.

Moreover, as per Why Investors Should Love Market Crashes, And How To Make Money From A Crash, former market darlings that get dumped at a certain point should be followed closely as they stabilize. That’s because stocks surviving a crash tend to outperform at a later point in time.

After tipping this stock at $5.4 it now trades $8.2 at the moment of writing.

Is there upside potential in this stock?

We believe there may be a consolidation around the $8 to $9 level before the rise continues. The long term chart shows not only how the long term moving average comes in at $8.6 but also a long term trend line sits right above it around $9.5.

Moreover, as a rule of thumb, if a stock doubles in a couple of months it may near a consolidation.

We are still very bullish on Pandora Media but believe a break may take place right above current levels. Ultimately, if the company continues to deliver on its fundamentals and financials, the stock may double from here, though not likely in 2018.

(Click on image to enlarge)