P To Pop Out Of The Box To $12

It has been a long time since talking about a stock bullishly relative to the near-term, but shares of Pandora appear ready to pop higher and perhaps significantly higher.


Taking Pandora higher potentially for the first leg of what could be a 25% move up from today’s close is a confirmed Bull Pennant that will remain confirmed above $9.45 for a precise target of $10.39. In turn, should Pandora fulfill its Bull Pennant it will confirm a rough Rounding Bottom that confirms at $10.02 on a daily basis for a precise target of $12.21.

Now what makes that $12.21 target so interesting to a chartist such as myself is the fact that it is one penny above an unclosed gap at $12.20 with the two aspects supporting each other. Put otherwise, the unclosed gap will try to fill and this will help the Rounding Bottom fulfill while the Rounding Bottom will work to fill that gap.
 
Even more interesting about the Rounding Bottom supporting the unclosed gap and the unclosed gap supporting the Rounding Bottom is the fact that the resistance represented by the top trendline of Pandora’s nearly year-long Descending Trend Channel is likely to support both by taking Pandora up with target-like pull to between $12 and $13.
Worth noting as well and supporting all of these bullish aspects is the fact that Pandora has started to reverse this year’s downtrend as shown by its upside breaching of the trendline to mark that downtrend just as occurred after the last two swipes down in the Descending Trend Channel with rough Rounding Bottoms causing those two reversals too.

It is this kind of pattern repetition that is really worth noting considering that the repetition typically does follow until it is broken with there a decent chance that this time it may be broken to the upside but something to discuss if and when the Rounding Bottom confirms on a daily basis with a possible failure at $7.83 seeming very unlikely at this point.

Far more likely is P popping out of the box to $12 as perhaps one of few stocks to trade against what is likely to be a tough tape in the weeks ahead.