KR runs into sellers again around 32.58
Kroger Company (KR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
KR finished the week -0.43% lower at 32.37 after gaining $0.25 (0.78%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KR as at May 22, 2020):
Friday's trading range has been $0.51 (1.58%), that's far below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KR. Prices continued to consolidate within a tight trading range between 31.50 and 32.58 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on April 17th, KR lost 0.00% on the following trading day.
Prices are trading close to the key technical resistance level at 32.62 (R1). After having been unable to move above 32.50 in the previous session, Kroger ran into sellers again around the same price level today, failing to move higher than 32.58.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 31.61 where further sell stops could get activated. As prices are trading close to May's low at 31.23, downside momentum might speed up should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Kroger. Out of 680 times, KR closed higher 53.38% 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 59.26% with an average market move of 0.78%.