KR closes within prior day's range after lackluster session
Kroger Company (KR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
KR ended Thursday at 29.00 gaining $1.06 (3.79%), significantly underperforming the S&P 500 (6.24%). Trading up to $0.67 lower after the open, the market 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KR as at Mar 26, 2020):
Thursday's trading range has been $1.85 (6.61%), that's below the last trading month's daily average range of $2.38. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for KR.
After moving lower in the prior session, Kroger managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 10th, KR actually lost -6.17% on the following trading day.
The stock managed to close back above the 100-day moving average at 28.60. Prices are trading close to the key technical resistance level at 30.00 (R1).
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's low at 26.72, downside momentum could speed up should KR break out to new lows for the year. Further selling might move prices lower should the market test February's nearby low at 26.87.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Kroger. Out of 54 times, KR closed higher 53.70% 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 61.11% with an average market move of 0.51%.