• Chart of the Day: Groupon, Inc. (GRPN)

    by  • January 11, 2013 11:37 am • Quick Hits, Tony Venosa's Chart of the Day • 4 Comments

    Today’s chart is of Groupon, Inc. (GRPN) which operates as a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount in North America and internationally.  The company sends daily emails to its subscribers regarding discounted offers for goods and services that are targeted by location and personal preferences.

    Ticker:  Groupon, Inc. (GRPN)

    What I Am Looking At:

    • Global X Social Media Index ETF (SOCL) outperforming the broader market, up nearly 7 percent year-to-date
    • GRPN showing underperformance on a year-over-year and a year-to-date basis
    • Shares at a critical inflection point as there remains a good deal of cross-currents
    • $5.20 is double the all-time low set back in November, could be potential resistance
    • $5.50 neckline resistance
    • Bullish Inverted Head & Shoulders formation versus a rising bearish wedge formation
    • August downside gap could act as a further resistance area
    • Descending 200-day moving average also coming into gap area
    • Peak call open interest at the 5-strike for the January and February series could stall shares
    • Short interest grew 31 percent since October 2012 and represents nearly 22 percent of the float
    • Analysts remain skeptical toward shares as there are currently 1 buy, 20 holds, and 3 sell ratings
    • Call buying relative to put buying has hit an extreme during the past 10 days as 5 times as many calls were purchased versus puts
    • Reports earnings on February 27th after close
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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


    4 Responses to Chart of the Day: Groupon, Inc. (GRPN)

    1. StockGuy
      January 13, 2013 8:38 am at 8:38 am

      I think there is great value here! Thank you for these posts!

    2. WP
      January 12, 2013 10:42 pm at 10:42 pm

      This is the same message I left yesterday which never got posted. What does this mean? Is this a good stock or a bad one.
      This “general” information can be obtained from a number of sources including Yahoo. No need to have a highly paid and highly educated investment technician provide data that is readily available (and probably already known) to the Fool community. What is it you are trying to convey?

      To me GRPN is just another “fly by” tech stock that we will have forgotten 5 years from now. They offer nothing that coupon mailers haven’t been offering for years. Just because they put it on the Internet does not make them valuable or unique. It’s a gimmick and gimmicks tend not to remain viable in the long run. $5.00 is far too much to pay for such gimmicks. Would you pay $5.00 to get a $0.10 coupon? This is effectively what you get for buying the stock. Do the math.

      • Tony Venosa
        January 14, 2013 12:20 pm at 12:20 pm

        Thanks for the reply, WP. The message I am trying to convey is that GRPN remains at a critical inflection point, whether it is bullish or bearish is not the point. There remain may crosscurrents, therefore not a solid edge to trade from.

        • WP
          January 14, 2013 1:22 pm at 1:22 pm

          Hi Tony,
          You are 100% correct.  Then why even bother mentioning it.
          Ad if you do have to mention it,  why not just say: “Not worth trading” Brevity should be the order of the day.  There are just too many words in all of these analyses that drive new traders such as myself nuts. Not enough that most analysts contradict each other regularly but they also do so with verbal excess. Anyway, thanks for the response and for the attention.
          Best regards,

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