Groupon analysis.

This stock has good chances to rise in the short and mid term as more technical signals are converging and the current price is in the $5-$10 range, where the chances for a double-digit percentage move are really high.

Here are a few elements that are pointing towards a higher price:

• high volumes at local lows in November ($2.65-$4.65 area)
• exhausting gap down on over 100M volume day
• price is over the 50 day exponential moving average (green) and the crossover volume was high
• low volumes in the last few weeks, in a narrow  price range between the 50 EXPMA and 100 EXPMA
• good internal wave structure starting from the most notable previous local highs in February 2012 (according to Elliott Wave analysis - not labeled in the chart in order to make it clear) 

Having all this clues noted, the investors should look for the next scenarios:

• immediate break above the current resistance from $5.50 (probably this week), followed by a quick retest of $5.500 as a support and then resuming move up. 
• another week or two in the same price range ($4.50-$5.50) on relatively low volumes (indicating an accumulation) followed by the break above the $5.50 resistance (as a confirmation) and reaching afterwards for the closest target zone. 

The first TARGET ZONE is in the $7.90-$9.00 area.

IMPORTANT: earnings report for Q3 is set on 8th of February!