KR closes above its opening price after recovering from early selling pressure
Kroger Company (KR) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
KR finished Thursday at 21.76 gaining $0.11 (0.51%), slightly outperforming the S&P 500 (0.23%). Trading up to $0.16 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KR as at Jul 11, 2019):
Thursday's trading range has been $0.25 (1.15%), that's far below the last trading month's daily average range of $0.53. 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 22.03 (R1). The share ran into sellers again today around 21.83 for the third trading day in a row after having found sellers at 21.82 in the prior session and at 21.83 two days ago. The last time this happened on June 6th, KR actually gained 0.97% on the following trading day.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 21.97 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 21.33 where further sell stops could get activated. As prices are trading close to July's high at 22.03, upside momentum might speed up should Kroger mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Kroger. Out of 145 times, KR closed higher 58.62% 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 55.17% with an average market move of 0.38%.