Groupon Inc - GRPN - Daily - Bullish setup for a rally

Groupon has earnings in 8 days, so it is a bit risky to go in ahead of earnings.

But, look at the chart and you will see that it has been inching downwards and washing out any bulls in a downward triangle pattern. This formation should wipe out bullish sentiment and stop out any new longs that had jumped on board the recent rally. The levels of oversold seem to be less intense when you see the early May decline get CCI to -300, then the early June low is just below -200, then the early July low is below -150. So, it would appear the power of the sellers is at least letting up and perhaps GRPN is already "sold-out" at this level. Note that it fell and held the "KEY HIDDEN LEVEL" where earnings were reported back in May. This is key as it represents buyers are lurking at that level and that can therefore be a stop loss level between now and the next earnings report in 8 days.

If you are afraid of a major gap against you, then exit before earnings.

Tim 1:01PM EST 6.39-6.40 bid-ask, showing 6.37 last.