Groupon took a big hit in march 2020 when covid became pandemic. Ever since then it has developed a well formed upward channel to 30-40 dollar price range. It has always been in my radar for a recovery play but however I never press the button to open a position until recently it started edged up from $35-$38 just before its earning release. I was hoping the recent turmoil could bring it back to $35 range but it just never hit my buy order.
Of course what happened after is well known by now, [symbol="NASDAQ:GRPN"]NASDAQ:GRPN[/symbol] earning well exceeded everyone's expectation and its price shot way up to $43.
While I continue to be bullish about this stock but I always try to control my risk/reward ratio to 1:1.5 like many of my other recommendations. So I would hope Groupon's stock price could consolidate back to $38, which I have already put a buy order there to open a position with $35 as my cut loss... with an upside price target at the mid-way of its trading range prior to the covid drop at $53 dollar....although It may never come back to $38 anymore.
If the recent bond yield fiasco cool down back to <1.2% I would be keen to raise my entry point a bit up to $40....At the time of this writing, I have no position in Groupon.
