The Kroger Co. (KR), which has beaten the earnings per share (EPS) estimates, on the 18th of June, but the stock declined to a test of the quarterly value level is $30.81. The stock then rebounded to $33.43 on the 25th of June, and today is holding its monthly pivot for the month of June to $32.65. The large supermarket chain is at the top of a golden cross on its daily chart and weekly chart is positive.
Kroger’s stock closed Thursday 25 June, to $32.78, up 13.1% per year, on the date and in the bull market territory 58.4% above its low of $20.70 posted on July 23, 2019. The stock is also in the correction of a territory to 11 per cent below its March 18 high of $36.84. The stock is fundamentally positive, with a P/E ratio of 12.16 and a dividend yield of 1.95%, depending on the trends.
The daily chart for Kroger
Refinitiv XENITH
Kroger stock has been above a golden cross since Oct. 31, when the 50-day simple moving average rose above its 200-day simple moving average to indicate that higher prices will follow. This follow-up to the stock until 18 March high of $36.84.
The stock quickly plunged by 25.8% to a low of $27.33 on the 26th of March. Kroger has rebounded above its 50-day simple moving average on the 31 March and began April trading around its second quarter pivot at $30.81.
As June began, Kroger stock has been carried out around its monthly pivot at $32.65, which was held again today. The stock is now above its 50-day and 200-day simple moving average of $32.55 and $29.13, respectively.
The table of the week for Kroger
Refinitiv XENITH
The table of the week for Kroger is positive, with above its five-week modified moving average of $32.40. The stock is also above its 200-week simple moving average, or the return to the average, to $27.63. This average has been a magnet between the weeks of December. 13 and 27 March.
The 12 x 3 x 3 weekly slow stochastic reading should rise to 60.39 this week, from 57.78 19 June.
Trading strategy: Buy Kroger stock on the weakness of its quarterly pivot at $30.81 and its 200-day simple moving average of $29.13. Reduce holdings on strength to its annual risky level at $44.37.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each calculation uses the past nine closes in these time horizons.
The second quarter of 2020 the level has been established based on the 31 March, close by, and the level of the month of June has been established on the basis of the May 29 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: investopedia.com
