KR dominated by bears dragging the market lower throughout the day
Kroger Company (KR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
KR ended the month 3.77% higher at 33.85 after losing $0.28 (-0.82%) today, significantly underperforming the S&P 500 (1.54%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (KR as at Jun 30, 2020):
Tuesday's trading range has been $0.62 (1.8%), that's far below the last trading month's daily average range of $0.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KR.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on June 10th, KR actually gained 0.40% on the following trading day.
Prices are trading close to the key technical support level at 33.76 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 32.68.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test May's close-by high at 34.50.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Kroger. Out of 517 times, KR closed higher 56.87% 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 61.12% with an average market move of 0.85%.