KR ends the day on a bearish note closing near the low of the day
Kroger Company (KR) Technical Analysis Report for Jun 18, 2019 | by Techniquant Editorial Team
KR ended Tuesday at 23.94 losing $0.42 (-1.72%) on high volume, notably underperforming the S&P 500 (0.97%). Trading $0.42 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (KR as at Jun 18, 2019):
Tuesday's trading range has been $0.78 (3.21%), that's far above the last trading month's daily average range of $0.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KR.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on May 15th, KR actually lost -2.18% on the following trading day.
Prices broke below the key technical support level at 24.16 (now R1), which is likely to act as resistance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Kroger. Out of 545 times, KR closed higher 53.58% 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 58.72% with an average market move of 0.70%.