NEW YORK (TheStreet) -- Good day traders!
Today's top picks are Pandora
(P - Get Report), Primero Mining
(PPP - Get Report) and Volcano
(VOLC - Get Report).
1. First, let's listen to Pandora, the Internet radio company.
Pandora traded up 4.93% on Wednesday, closing at $26.59 per share.
- Wednesday's range: $25.02 - $26.82
- 52-week range: $14.43 - $40.44
- Wednesday's volume: 10,494,230
- 3-month average volume: 10,860,400
Pandora has been playing a sad song and having some trouble. It has had unfavorable news in the past. Now that the dust has settled, shares are on the way back up.
On Wednesday the chart formed a bullish engulfing signal and closed over the recent consolidation level. The price action has been trading down for the last three months, pulling back over 30%.
Yesterday, shares closed over the 50-day simple moving average for the first time in months -- and with gusto. Plus, yesterday's close was over the near-term resistance levels. Right now, the share price is in the middle of the gap-down that occurred after the earnings report on April 24.
The gap-down will act as resistance until the gap is closed. Those resistance levels are $25.50 to $28.20. After the gap, there is resistance at $29.29, $32.12, then again at about $34.
I would look for an entry within yesterday's trading range, but I'd prefer share price to remain above the 50 at $25.63. I'd set a stop below Tuesday's low of $24.84, say $24.80. I would target first resistance level of $29.29, which is 10% to the upside. Then, I'd look for the next resistance level, and keep moving my stop up as shares trade higher.
Stay long until you see a confirmed sell signal, or a close below the t-line
Up next: Primeo Mining and Volcano.
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