NEW BULLISH Plays

Groupon, Inc. - GRPN - close: 10.40 change: +0.26

Stop Loss: 9.65
Target(s): 12.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 12, 2013
Time Frame: to 8 weeks
Average Daily Volume = 18.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
GRPN is listed as being in the technology sector. The company provides daily deal with significant discounts in multiple urban areas, delivered to your email or on their website. The stock price peaked in mid September at $12.64. Shares closed at $8.75 on December 2nd. That's -30% correction. That December low also marked a test of technical support at its rising 200-dma. The stock has recently picked up speed with a bounce from recent support near the $9.00 area thanks in part to some bullish analyst comments and a new $15 price target.

You'll also notice that GRPN is ignoring the market's three-day decline. I am suggesting a trigger to open small bullish positions at $10.70. If triggered our target is $12.50.

FYI: A rally past $11.00 will create a new buy signal on GRPN's point & figure chart.

Trigger @ $10.70

Suggested Position: buy GRPN stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the 2014 FEB $12 call (GRPN1422b12) current ask $0.62

Annotated chart: