Groupon Technical Analysis - BULLISH
Updated
Here are my current thoughts on GRPN:
1) We have completed our first wave structure up and we are currently in a correction pattern before continuing to the upside. Right now it appears to be playing out as an "ABCDE" symmetrical triangle / regular flat pattern.
- If this is invalidated, I have included the possibility for if this becomes a 3-3-5 expanded / running flat (which I don't think is the case, but - you want to be ready for everything!)
2) Upon breaking out of the triangle, my 1st idea would be to play the breakout targeting a 1:1 extension of the height of the triangle, first targeting 50%, then 100% (labeled in photo).
3) Since symmetrical triangles are continuation patterns, I would then look to target a 1:1 extension of the entire wave up - targeting the $4 area.
Earnings are today so this should get interesting!
If you like my content and would like to see more, please drop a like and/or comment! Let me know if you agree, disagree, would like further explanation, or just want to talk about it.
Thank you.
1) We have completed our first wave structure up and we are currently in a correction pattern before continuing to the upside. Right now it appears to be playing out as an "ABCDE" symmetrical triangle / regular flat pattern.
- If this is invalidated, I have included the possibility for if this becomes a 3-3-5 expanded / running flat (which I don't think is the case, but - you want to be ready for everything!)
2) Upon breaking out of the triangle, my 1st idea would be to play the breakout targeting a 1:1 extension of the height of the triangle, first targeting 50%, then 100% (labeled in photo).
3) Since symmetrical triangles are continuation patterns, I would then look to target a 1:1 extension of the entire wave up - targeting the $4 area.
Earnings are today so this should get interesting!
If you like my content and would like to see more, please drop a like and/or comment! Let me know if you agree, disagree, would like further explanation, or just want to talk about it.
Thank you.
Note
Welp.. There's earnings for you. From a TA perspective this was spot on - However, earnings are always a risky game to play, so be safe. Time to buy the dipNote
Rule to self: Don't play earnings as it is likely to violate existing TA... make sure to perform your due diligence on a company and have a healthy balance of FA as well. On to the next trade!
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