Groupon, Inc. (GRPN) was last reviewed in early July where I wrote that, "The question for me is not whether someone will step in and buy the company but whether absent a deal do the charts look attractive enough to buy? I have to answer no. I do not see enough buying and positive signals to recommend GRPN."
GRPN rallied into late July and then started a decline to new lows. Is the picture any more attractive now? Let's dig into the charts again.
In this daily bar chart of GRPN, below, we can see that prices are below the declining 50-day moving average line and the bearish 200-day line.
The daily On-Balance-Volume (OBV) line peaked in late July and rapidly moved lower telling us that sellers of GRPN were in control and selling aggressively.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line trying to generate a cover shorts signal.
In this weekly bar chart of GRPN, below, we can see a bearish alignment of our go-to indicators. Prices are below the declining 40-week moving average line.
The weekly OBV line has lost ground the past two months and the MACD oscillator is in an outright sell mode.
In this longer-term Point and Figure chart of GRPN, below, we can see a downside price target of $2.50.
Bottom line strategy: The charts of GRPN are not attractive. I would stand aside until signs of a turnaround to the upside.