GRPN breaks back above 50-day moving average
Groupon Inc. (GRPN) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
GRPN ended Tuesday at 3.56 surging $0.10 (2.89%), strongly outperforming the S&P 500 (0.05%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on March 15th, GRPN actually lost -1.98% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 3.51, the stock confirmed its breakout through the previous session high after trading up to $0.06 above it intraday.
Daily Candlestick Chart (GRPN as at Apr 16, 2019):
Tuesday's trading range has been $0.10 (2.87%), that's slightly above the last trading month's daily average range of $0.10. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GRPN.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 50-day moving average at 3.48. Prices are trading close to the key technical resistance level at 3.60 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 3.61 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Groupon. Out of 132 times, GRPN closed lower 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.85% with an average market move of -1.89%.