Supermarket giant Kroger (KR) was downgraded to a "sell" by a sell-side fundamental analyst and the stock is reacting (lower) Friday. So, let's check on the charts and indicators.
The last time we looked at KR was back on April 8 where we wrote, "KR peaked in August and worked down to the $31 area by December. KR has started a new upswing and aggressive traders who do not shop hungry could go long KR at current levels risking below $34." Let's see if a new strategy is needed.
In the daily bar chart of KR, below, we can see that the shares rallied from our April review. More recently prices are pulling back after touching a new high of $50. KR is testing the 50-day moving average line and remains above the rising 200-day line which intersects around $41.50 or so.
The On-Balance-Volume (OBV) line has moved up and down with the price action the past 12 months. The Moving Average Convergence Divergence (MACD) oscillator is currently pointed down towards the zero line.