The Poop On Groupon

By -

Well, Groupon has been getting mauled all day. One can only imagine the emotional trauma suffered after the close yesterday by those long the stock, long the calls, short the puts – – – you name it. Because, for a while there, GRPN was soaring sky-high after earnings were announced. You can picture Groupon bulls chest-bumping and high-fiving, while bears opened up a fresh pack of razor blades. But hold the phone – – soon thereafter (again, after hours, where no options trading can take place) the stock began a free-fall. So the groups switched sides with respect do who was high-fiving and who was thrice-slicing.

The breakout from its base pattern (tinted in green) had a measured move that I’ve highlighted with that thin green horizontal. As you can see, the target was met, backed away, and then exceeded – indeed, the price oscillated around the target several times before its free-fall this morning. My hunch is that it will regain some footing near that yellow line, having lost a THIRD of its value since just early last month.

0221-GRPN

Mark This Post as a Favorite