KR closes below its opening price unable to hold early session gains
Kroger Company (KR) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, KR finished the week 1.38% higher at 24.26 after losing $0.36 (-1.46%) today, significantly underperforming the S&P 500 (-0.16%). Trading $0.28 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 24.49, the market confirmed its breakout through the prior session low after trading up to $0.31 below it intraday.
Daily Candlestick Chart (KR as at Jun 14, 2019):
Friday's trading range has been $0.76 (3.08%), that's far above the last trading month's daily average range of $0.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on May 16th, KR lost -1.78% on the following trading day. Despite a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 23.98 (S1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Kroger. Out of 105 times, KR closed higher 56.19% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.81% with an average market move of 0.81%.