KR dominated by bulls lifting the market higher throughout the day
Kroger Company (KR) Technical Analysis Report for Jul 15, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, KR ended Monday at 22.08 gaining $0.19 (0.87%), outperforming the S&P 500 (0.02%). The bulls were in full control today, moving the market higher throughout the whole session. 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 15, 2019):
Monday's trading range has been $0.31 (1.42%), that's below the last trading month's daily average range of $0.51. 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 White Candle.
Buyers managed to take out the key technical resistance level at 22.03 (now S1), which is likely to act as support going forward. The last time this happened on May 10th, KR actually lost -1.70% on the following trading day. After having been unable to move above 22.11 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 22.14.
Although the stock is experiencing a short-term uptrend, this could 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 might accelerate should the market break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Kroger. Out of 230 times, KR closed higher 52.61% 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 55.65% with an average market move of 0.57%.