NEW YORK (TheStreet) -- After almost three straight days of gains this week, Pandora (P) is bumping up against heavy resistance near its declining 200-day moving average. A pullback may be ahead before the stock can extend Friday's breakout move.

Pandora's stock surged almost 15% on Friday after the company reported better-than-expected results for the second quarter. The stock opened the session with a huge upside gap and finished the day at new July highs on its heaviest upside trading of 2015. The powerful news-inspired breakout move was a sharp reversal from earlier in the week, when the shares closed at fresh 52-week lows on Monday.
With this week's gains, Pandora is now up over 25% from last week's low. In the near term, the eight-day rally has become a bit extended. With momentum beginning to ease as a heavy 200-day moving average comes into play, a consolidation appears to be in the cards.

A pullback before the $17.50 area is convincingly cleared would be a healthy event and give patient bulls a lower-risk entry point. Fortunately, the recent rally has left behind layers of support.

Last week's high at $16.47 marks the initial layer of support. Just below is the initial July high at $15.78, a level that also represents a one-third retracement of the huge rally off this month's lows. Investors should focus on that area for new or additional purchases.

A close below the Friday low at $15.16 would be a clear warning sign that the 200-day, which Pandora hasn't violated since July of last year, remains extremely heavy.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stock mentioned.