Groupon Inc. Retreat From Highs As Takeover Talk Dissipates

Groupon Inc.

shares are trading lower by $0.12 at $4.10 in Wednesday's session. The issue has made three lower highs, since peaking at $4.45 on February 19. That ended a monster rally from its Fevruary 11 close ($2.24) or nearly 100 percent at the peak level of $4.45. The rally was kickstarted by a better-than expected Q4 report and continued on when it was revealed Alibaba Group

had taken a 5.6 percent stake in the company. The stake in Groupon had many thinking that Alibaba had more than just a "passive" interest in the company. Now that the rumor mill has subsided, so has the price of Groupon. Earliier in the session, it dipped under $4, but has found support ahead of its February 19 low ($3.87), only reaching $3.95 and has rebounded back into the $4 handle. If the current low is breached, there may be additional support at the pair of lows from February 17 ($3.60) and February 18 ($3.62).