Kroger (KR) has not been in our shopping cart since last May, when we wrote, "Is the train leaving the station for a prolonged rise? We can't answer that now but we can say KR is likely to rally to $33, which would put it above the 40-week moving average line. I think aggressive traders can go long here for at least a trade to $33 and maybe more. Risk a close below $28.75." The price could not break above the 40-week average and sank quickly in June stopping us out for a loss. Prices bottomed again in September/October around $20 and then rallied to $31. The bears returned again just the other day. What's ahead now?
In this updated daily bar chart of KR, below, we can see that prices are below both the declining 50-day moving average line and the declining 200-day line. The recent downside price gap with heavy volume makes the whole chart look particularly bearish. The On-Balance-Volume (OBV) line peaked in late January and was declining in February before the gap telling us that sellers were more aggressive for the month before the gap. The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line last month for an outright sell signal.
In this weekly bar chart of KR, below, we don't see the price gap but we still have a weak decline below the 40-week moving average line. The weekly OBV line has been declining for two months and the weekly MACD oscillator has crossed to a take profits sell signal.
In this Point and Figure chart of KR, below, we do not have a price gap because that is the way this kind of chart is constructed. A downside price target has been reached but that does not rule out further declines.
Bottom line -- the shares of KR have been on a roller coaster ride the past year. Who knows what the longer-term brings for this stock but the short-run looks lower.