Turning to GrubHub to feed your portfolio

• Posted by Greg Harmon
• on May 2nd, 2016

GrubHub, $GRUB, is a genius idea for big cities with tons of restaurants. They connect diners and restaurants, by putting the menus on line and offering delivery. Don’t you like to browse a bunch of menus to choose instead of just one? I am kind of partial to their emergency beacon too.

The stock has had some issues though. After IPO’ing in March 2014 it moved higher to a peak in April 2015. Since then it has been all down hill. It finally found a bottom at the end of January, a full $8 below its IPO price of $26. Now it is rising from the ashes and back at its IPO price.

As it has been carving out a bottom, the price action has traced out an Inverse Head and Shoulders pattern. The price cleared the neckline April 14th giving a price objective of at least 32.70. The pause in consolidation the past two weeks gives an opportunity to trade it.

This bull flag made a doji Friday, an indecision candle, and it is confirming to the upside Monday. The momentum indicators are bullish with the RSI rising and the MACD avoiding a cross down. It also looks that it will print a bullish Golden Cross in about two weeks. Maybe its time to order some GrubHub to feed your portfolio.

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