Let’s review the Groupon (GRPN) trade. Looks like the stock has come full circle. (March 06, 2013)
GRPN
I’m Dan Fitzpatrick at StockMarketMentor.com on Wednesday, March 6th. I’m following this Groupon ( $GRPN Groupon Inc ) trade all the way through. If you’ve been following this chart as I present it ever so often, you’ll realize that back here or you’ll remember that back here, before the company announced earnings, I’d been saying, “Oh you know, hey, Groupon’s ( $GRPN Groupon Inc ) moving higher, you want to accumulate it on dips.” Little did I know that as I was making that video, shame on me, as I was making that video the company announced earnings and this is where it opened up the next day; so I was wrong on this. However, I made up for it, because what I noted was, if you’re buying this stock, anticipate resistance being up around this level, because all these folks here, are losers. Now don’t take that personally, but when they bought up here, when the stock gapped down, look at all this massive volume, a lot of them sold, but not all of them did, and we don’t even need to talk about individual people. This is just the way stocks trade on this type of a pattern where it’s a big breakdown within a trend, a definable trend. You draw a line where support was that was broken and you say, “Okay, this is where they were buying, down here. Fine, so that’s our new support, right down there, that’s our new support. So where can we expect resistance to be? Well, you know where I’m going to draw the next box. We can expect resistance to be right where this big cluster of trading was that defined support. So what I’m suggesting is Groupon’s ( $GRPN Groupon Inc ) pretty much run its course. I’ve no idea how far the pullbacks going to go, I just know this, if you bought here, on this day or over the next couple days, this move has pretty much run its course Now the stocks pulling back and my bet is that because of the weakness today, over six percent, okay, 34 cents, but it’s a $5.00 stock; the trades really heavy, 42 million, but with this type of a move I think you’re going to see more selling pressure tomorrow. So I would suggest that if you’re long you just get out of the trade. If you’re looking for something to short just look elsewhere, because this is just such a hinky stock, that’s a technical term, that I think that, like I said, the trade is done, it was a clear trade when the stock gapped down and then moved up, closed higher than the open, that was the trade to begin with, that was the initiation, this is the end of the trade right here. Okay members over to the Strategy Session; we’ve got how many stocks? About twenty-two of them that I want to show you and some of them are actionable but a lot of them are holdable and that’s what we really want to be doing in this market. So we’ll look at some contrasting trends between the daily and the weekly charts and see if we can get a bias. Free Chart