Kroger Inc. (KR) has rallied the past twelve months with the daily bar chart punctuated with sharp upside and downside price gaps. Traders using moving averages have probably been frustrated over the past year as the trends have not persisted for long. The other indicators are mixed but let's finish going up and down "technical aisles" before suggesting a strategy.
In this daily bar chart of KR, below, we can see that heavy volume has accompanied all the price gaps as traders and investors adjusted their positions. KR is below the slightly rising 50-day moving average line and the rising 200-day average. The daily On-Balance-Volume (OBV) line has been disappointing to the bulls. The OBV line has been nearly neutral since February and does not suggest that buyers have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a bearish mode.
In this weekly bar chart of KR, below, we lose any price gaps because of the construction of the chart. Prices are above the rising 40-week moving average line. The weekly OBV line looks like it is trying to turn around to the upside but it is taking forever. The weekly MACD oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of KR, below, we can see an upside price target of $32.32. A rally to $32.93 would be a breakout and would open the upside to further gains.
Bottom line strategy: With September showing a gap to the downside and the OBV line weakening on the daily chart I would not rush to be a buyer of KR. A decline to $27.50 would weaken the chart and result in a test of the 200-day average.