KR finds buyers again around 34.38
Kroger Company (KR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
KR finished the month 2.78% higher at 34.79 after gaining $0.38 (1.1%) today, slightly outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Jul 31, 2020):
Friday's trading range has been $0.42 (1.22%), that's below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for KR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, Kroger managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move lower than 34.34 in the previous session, the share found buyers again around the same price level today at 34.38. The last time this happened on Wednesday, KR actually lost -1.99% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 35.42 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 34.34 where further sell stops could get activated. As prices are trading close to July's high at 35.58, upside momentum might speed up should the market mark new highs for the month.
Among the nine 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 53 times, KR closed higher 54.72% 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 64.15% with an average market move of 0.87%.