Tuesday, March 11, 2014

Groupon Inc (NASDAQ: GRPN)

Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount worldwide. It also offers deals on products for which it acts as the merchant of record. The company offers deals in various categories, including food and drink, events and activities, beauty and spa, health and fitness, home and garden, and automotive; deals on various product lines comprising electronics, sporting goods, jewelry, toys, home, and apparel; features travel offers that include hotels, airfare, and package deals, which covers domestic and international travel; and tools, such as payments and credit card payment processing service, as well as point-of-sale solutions to merchants. It distributes its deals to customers through mobile applications and mobile browsers that enable consumers to browse, purchase, manage, and redeem deals on their mobile devices; Websites; emails that are targeted by location, purchase history, and personal preferences; and publishes its deals through various social networks.
To review potential trading opportunities with Groupon’s stock, please take a look at the 1-year chart of GRPN (Groupon, Inc.) below with my added notations:
1-year chart of GRPN (Groupon, Inc.)
TEX appears to have formed a double top price pattern (blue) from January though mid-June. Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. GRPN confirmed its pattern by breaking the $9 support (blue) that was created by the double top pattern.

The Tale of the Tape: GRPN has broken down from its double top and should be moving lower overall. A short trade could be made on any rallies back up to $9, while a long trade could be made if the stock were to break back above the $9 level.
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