May 29, 2017

Groupon (GRPN)

Groupon’s (GRPN) gap down on earnings has so far found support a the 50% retracement level from the 11/13/12 lows to the 9/19/13 highs.

Ideally we would normally like to see a more of an orderly decline along with some positive divergence but gaps can make that type of set-up difficult.  We do currently view the pullback in GRPN’s shares as an opportunity but would only be interested in trades where there was a defined risk level.  That is what we now have with the 50% Fib which held as support.

We believe trader’s can now use pullbacks for long opportunities with the 2/24/14 lows of $7.67 and the 50% fib level as their stop.

 

Groupon (GRPN) (click to expand)

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