Pandora got a big boost this week from news that they announced an 52% increase in listening hours - maybe from people like me who run Pandora in the background while analyzing stock charts...So this could be the start of a bigger trend. Remember I was was set up to make 40% on Pandora earlier in the year, but got stopped out because of the volatility and was too scared it was going to crash again to get back in.
On this trade my judgement call was that a nearly 1% per day gain is a situation where you want to take profits and then look for a re-entry point back closer to the EMA - shown by the green line on the graph below. I'm using the 5-day EMA because mostly I characterize myself as a swing trader. A longer EMA would have too much lag time, leading to missed entry and exit points. Another factor in my decision to take profits was that I had no stop loss, trailing stop or profit-taking order on this trade. Pandora's volatility is such that any of these strategies are going to backfire one way or another, so you just have to grit your teeth and trust your daily decision making skills.
My profit on this trade perfectly fit the analysis on SeekingAlpha.com (see article link above) so all credit to their powers of observation "I still see Pandora as a stock for investors who like to play ranges. Look for low points near $8.50 and high points near $9.25 for the time being"
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