During Friday's Mad Money program Jim Cramer presented his game plan for the week. Thursday brings earnings from Kroger Co. (KR) . Cramer said Wall Street fell in love with Kroger after Warren Buffett took a stake in the company, but with increased competition, that love isn't likely to last.
Let's check out the charts of KR ahead of Thursday's earnings to see if we find any love or just heartache.
In the daily bar chart of KR, below, we can see the price activity of the past 12 months. Unlike stocks that were crushed in February and March, KR traded in a volatile sideways pattern before resuming its uptrend. Prices turned sideways from late April but the slopes of the 50-day moving average and the 200-day moving average have stayed positive.
The daily On-Balance-Volume (OBV) line actually rose in March and then turned neutral from April, which suggests we are seeing a balance between buyers and sellers. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since March and now is just slightly above the zero line. Not a real robust picture.