Groupon (GRPN) looks poised to move higher from here. (February 27, 2013)
GRPN
I’m Dan Fitzpatrick at Stock and OptionMarketMentor.com. It is Wednesday the 27th of February. The market was pretty strong today and one of the stocks I want to talk about here, the only stock I’m going to talk about here is Groupon ( $GRPN Groupon Inc ). I started with a big zoom out here so you can see what kind of pattern this is creating. I mean this has been a really long base since September. Now, the stock was up big today, almost eight percent. Right? Well, I don’t think this is a bad time, if you haven’t been in it all ready, to start building a position. My bet is it will come back, at some point, to the 20-day moving average. But look at the direction of the 20-day moving average. It is, it’s moving higher. Even if the stock does, in fact, pull back to the 20-day moving average you’re still probably going to get it for maybe about twenty-five cents cheaper than it is right now. And even though I know that can be kind of a large percentage move, if you’ve got this type of timeframe, clear out here, stretch this puppy over, you can see the Groupon ( $GRPN Groupon Inc ) has quite a bit of upside before it’s going to hit any resistance. The 200-day moving average is this line right here, but it just seems to me like it’s not going to be too much time before the stocks just going to knife through there. So what I would suggest using is the 20-day moving average, or I’ll just kind of draw these lows actually. Use that as your reference. Again, you start building a position right now, but anytime this stock pulls back to this level, then go ahead and take some more stock, build a position, and my bet is, overtime you’re going to make some money on Groupon ( $GRPN Groupon Inc ). Okay members, get over to the Strategy Session; lots of stocks to talk about. Free Chart