Groupon's 15min chart shows MACD Death Cross, Bearish Marubozu pattern.

Tuesday, Jul 1, 2025 3:02 pm ET2min read

Based on the 15-minute chart for Groupon, there has been a significant development. The Moving Average Convergence Divergence (MACD) indicator has triggered a "Death Cross," indicating a bearish trend. Furthermore, the candlestick pattern observed on July 1, 2025 at 15:00 is a "Bearish Marubozu," which suggests that the bears are currently in control of the market. This indicates that the downward momentum is likely to persist, and the stock price has the potential to continue falling.

Groupon (GRPN) has experienced significant market developments in the past few days, with the Moving Average Convergence Divergence (MACD) indicator triggering a "Death Cross" and a candlestick pattern indicating a bearish trend. These technical signals suggest a potential downward momentum for the stock.

The MACD indicator, which is used to identify changes in the strength, direction, momentum, and duration of a trend in a stock's price, has formed a "Death Cross." This occurs when the MACD line crosses below the signal line, indicating a bearish trend. The candlestick pattern observed on July 1, 2025 at 15:00, specifically a "Bearish Marubozu," further reinforces this bearish signal. This pattern suggests that the bears are currently in control of the market, and the downward momentum is likely to persist.

Historically, the MACD has been a reliable indicator for predicting trend reversals. The "Death Cross" has been a strong signal for bearish trends, and the candlestick pattern of a "Bearish Marubozu" further supports this interpretation. Investors should closely monitor Groupon's performance in the coming days to assess the impact of these technical signals.

In terms of recent performance, Groupon has seen a significant gain of 23.63% over the previous month, outperforming the Retail-Wholesale sector and the S&P 500. However, the stock closed at $33.91 in the latest trading session, marking a -5.12% move from the prior day. This decline suggests a potential reversal in the stock's upward trend.

Investors should also pay attention to Groupon's upcoming earnings disclosure, as the company's earnings per share (EPS) are projected to be -$0.02, reflecting no change from the same quarter last year. Additionally, the consensus estimate calls for revenue of $122.86 million, down 1.41% from the prior-year quarter.

Despite these bearish signals, Groupon's Zacks Rank remains at #2 (Buy), indicating a favorable outlook from analysts. The stock is currently trading at a Forward P/E ratio of 117.82, which is significantly higher than the industry average of 24.96. This premium valuation may indicate that investors are pricing in growth potential.

In conclusion, Groupon faces bearish signals from the MACD "Death Cross" and a "Bearish Marubozu" candlestick pattern. While the stock has shown strong performance in recent months, these technical indicators suggest a potential downward momentum. Investors should closely monitor Groupon's performance and consider the impact of these signals on their investment decisions.

References:
[1] https://www.nasdaq.com/articles/groupon-grpn-stock-drops-despite-market-gains-important-facts-note
[2] https://stockinvest.us/stock/GRPN
[3] https://www.nasdaq.com/articles/groupon-grpn-recently-broke-out-above-20-day-moving-average

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