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:
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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