Stock Of The Day: Is The Groupon Rally Over?

Core Viewpoint - Groupon, Inc. (GRPN) stock is currently overbought and nearing a resistance level, indicating a potential sell-off in the near future [1][4][5] Group 1: Stock Performance - Trading in Groupon stock has been quiet but trending higher, with a significant chance of reversal and sell-off due to overbought conditions [1] - The Relative Strength Momentum Indicator (RSI) shows that the stock is in overbought territory, as indicated by the blue line being above the horizontal red line [1][2] Group 2: Market Behavior - Over the past year, each time the RSI indicated overbought conditions, a subsequent decline in stock price followed [4] - Groupon is approaching a resistance level around $18, where many traders may look to sell, fearing they will miss out on potential profits [4][5] - The fear of being undercut by other sellers may lead to a reduction in the prices traders are willing to accept, potentially triggering a snowball effect that drives the price lower [5]