Another look at our last trade idea on Groupon (GRPN). (February 02, 2013)
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I’m Dan Fitzpatrick a StockMarketMentor.com on Saturday, February 2nd. I just want to continue with our Groupon ( $GRPN Groupon Inc ) analysis here. Now, I think this is kind of off to the races, not in a straight line. If you look at the stock it’s been in an uptrend, in kind of a new uptrend, you can see that as defined by the 50-day moving average, which had been flat and before then it had been moving lower; so that’s a good thing. Also the 20-day moving average is pretty; it’s just kind of drifting higher too. So this is, in my view, a sustainable uptrend. You can see it’s just bumping up against this last resistance here, so I’m looking at this as really kind of a nice prolonged bottom. Now, I’m going to be off next week, so you’re not going to be getting any more free videos from me until the following week. But look, look for the 50-day and the 200-day moving average to cross ultimately, I mean I think that’s going to happen. So I think the trade for Groupon ( $GRPN Groupon Inc ) is just to stay long, I mean look, it goes up over two percent, up a dime, I mean this is a low priced stock; It doesn’t have to move up much for you to make money on it. But what you do need to do is, don’t trade it, don’t try to trade it, just take a position in it and let the position work; because I think ultimately this stock is going to continue making more money, it should get over $6.00 pretty soon, not again in a straight line, but over the next few weeks I think you’re going to see at least another 40-cents out of this. You do the math on the percent return, not too shabby. Okay members get over to the Weekend Update and have a good weekend. Free Chart