KR breaks back below 50-day moving average
Kroger Company (KR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KR ended the week 0.97% higher at 28.23 after losing $0.40 (-1.4%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 28.43, Kroger confirmed its breakout through the prior session low after trading up to $0.35 below it intraday.
Daily Candlestick Chart (KR as at Feb 14, 2020):
Friday's trading range has been $0.63 (2.21%), that's above the last trading month's daily average range of $0.48. 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 higher than usual for KR.
The market closed back below the 50-day moving average at 28.26. When this moving average was crossed below the last time on January 29th, KR actually gained 0.36% on the following trading day. After having been unable to move above 28.78 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 28.71.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 27.87 where further sell stops might get activated. With prices trading close to this year's high at 29.16, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Kroger. Out of 396 times, KR closed higher 55.05% 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 58.84% with an average market move of 0.58%.