Grubhub (GRUB) Lost a Level. Short into Earnings.

Last week's analysis suggested that Grubhub could make an attempt to breakout in the form of a cup and handle. However, Thursday's action negated this potential. Instead, it's shaping up as a great short opportunity, especially with earnings being reported this upcoming Thursday (4/25).

If it's true that Q1 earnings are consistently featuring reduced guidance, it's likely that a weak report here will further accelerate their decline.

Target #1: 50
Target #2: 42