KR closes lower for the 2nd day in a row
Kroger Company (KR) Technical Analysis Report for Jul 10, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KR ended Wednesday at 21.65 losing $0.06 (-0.28%), underperforming the S&P 500 (0.45%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KR as at Jul 10, 2019):
Wednesday's trading range has been $0.49 (2.25%), that's slightly below the last trading month's daily average range of $0.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KR. Prices continued to consolidate within a tight trading range between 21.33 and 21.97 where it has been caught now for the whole last trading week.
After having been unable to move above 21.83 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 21.82. The last time this happened on July 3rd, KR actually gained 0.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 21.97 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 21.17 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Kroger. Out of 679 times, KR closed higher 53.02% 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 60.24% with an average market move of 0.78%.