The fast-paced Lightning Round segment of the popular Mad Money program is a viewer favorite. This is when callers can quiz Jim Cramer about stocks they have an interest in. One caller Wednesday night asked Jim about Groupon (GRPN) . "This is a reopening stock and it's one that works," responded Cramer.
Let's check out the GRPN charts.
In the daily bar chart of GRPN, below, we can see that prices have been trending higher the past 12 months. Pullbacks or corrections have been long and relatively deep, which is not a pattern I like to see. Long corrections suggest to me that buyers are not anxious or aggressive. GRPN followed this pattern until the end of February when it exploded sharply to the upside. GRPN is trading above the rising 50-day moving average line and is overbought when compared to the rising 200-day moving average line.
The On-Balance-Volume (OBV) line jumped higher in early August and then slowly improved until another jump higher in recent days. The Moving Average Convergence Divergence (MACD) oscillator has been moving around the zero line for months but turned stronger and more bullish in recent days.