KR pushes through Thursday's high
Kroger Company (KR) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, KR ended the week 0.64% higher at 21.89 after gaining $0.13 (0.6%) today, slightly outperforming the S&P 500 (0.46%). Closing above Thursday's high at 21.83, the stock confirmed its breakout through the previous session high after trading up to $0.27 above it intraday.
Daily Candlestick Chart (KR as at Jul 12, 2019):
Friday's trading range has been $0.39 (1.79%), that's 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.
Unable to break through the key technical resistance level at 22.03 (R1), the market closed below it after spiking up to 22.10 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 20th, KR lost -3.85% on the following trading day.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 21.17, downside momentum could speed up should Kroger break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Kroger. Out of 230 times, KR closed higher 51.30% 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 52.61% with an average market move of 0.20%.