KR breaks below Tuesday's low
Kroger Company (KR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, KR finished Wednesday at 32.02 losing $0.70 (-2.14%) on high volume, strongly underperforming the S&P 500 (-0.46%). Today's close at 32.02 marks the lowest recorded closing price since June 18th. Closing below Tuesday's low at 32.44, the market confirmed its breakout through the previous session low after trading up to $0.54 below it intraday.
Daily Candlestick Chart (KR as at Sep 16, 2020):
Wednesday's trading range has been $1.08 (3.3%), that's above the last trading month's daily average range of $0.87. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for KR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 31.62 (S1). Prices broke below the key technical support level at 32.38 (now R1), which is likely to act as resistance going forward. The last time this happened on Monday, KR lost -0.37% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 35.19.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Kroger. Out of 30 times, KR closed higher 63.33% 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 56.67% with an average market move of 0.87%.