Forget Facebook

Though the Facebook (Nasdaq: FB) buzz continues to control investor attention, there are better options in the business networking industry, as I discussed last week. LinkedIn (Nasdaq: LNKD) was featured on Friday and today I will focus on Groupon (Nasdaq: GRPN) stock.

Much like FB, the current price of GRPN is below its IPO filing price. While Facebook could decline further, Groupon shares may have bottomed near $10 two weeks ago.

On May 14, Groupon reported earnings that surpassed analyst expectations.  The stock initially rallied 20% to $15 following the news. The shares have come back down to $12 since then, though they could rally up to $15 again should investors protect $12.

In the longer term, the stock could encounter more formidable resistance just above the $18 level, as represented by the blue line in the chart below. But that represents 50% of upside from the $12 support area. Traders can enter new long positions today with a stop near $11, or wait for a high volume breakout past $15.

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