KR(Daily). Consolidation breakout.8 month Range consolidation break_Out, Relative to S&P 500 break_out confirmation, above 50 and 200 sma, acting as support. Retest of Support possible.
Trade ideas
Speculating on upside breakout for KR / Fundamental Strength + 10 JUL15 77.5 CALL (21 Days to Exp., Imp. Vol 15.84%, Delta .10, Position Delta 95.25)
Well KR has been slowly but steadily accumulating itself into an ascending triangle pattern, which is one of my preferred breakout patterns showing buy orders building up positions prior to a breakout (In this case aiming towards a bullish breakout). This is more of a trade rather than an investment position hence the near term expiration in the options, so I'll be looking to exit the trade if price reaches the $77-$80 levels. Yesterday P/A did form a inverted hammer / dragon fly doji which shows the sellers inability to push price lower. When you look at the volume you can see that there is above average selling the past week but they haven't been able to push lower, which tells me that we can be in for a short squeeze soon.
As many know you can look into the derivative market to look for clues on what the institutional side of the market is doing. And it is something I always check for a little extra peace of mind when entering a trade hehe. Largest options trade for today so far is +100 JUL 15 72.5 CALLS . Which is roughly the equivalent of +10,000 Shares, which isn't large per say, but is something to note.
Exiting at a loss: If price on the W1 chart closes below the $70 level.
Notes: Do note that we have a failed Head & Shoulders pattern. And KR did raise its dividend by 13.5%, and buying back $500 Million shares, and announced a 2-for-1 stock split.
Cheers, happy trading. =)
Kroger: Looking For Lower Trading To Get A Correctional ShortNice topping behaviour after a long term extended uptrend. I want to see a lower open tomorrow to even consider shorting this, this just looked good so I thought I'd publish it.
Beware, this was an extended uptrend, so bulls have been around long term. You want to find good confirmation to short something like this. I am expecting if we manage to find a short here, the highly likely target will be the 200MA, where it will probably test the level and move back up into bullish continuation. But that's just a prediction.
Regards
Tom
KR bull trend continues after pullbackI posted on KR just a couple of weeks ago (18th February) making a big case for entering long into this stock if you weren't already in it. The next bar saw price continue to rise - followed by 10 days of pullback!
However, the 50ma held strong (with a hammer reversal candle just below the $70 round number) and any long-term position with a reasonable stop loss would not have been stopped out - and traders are now be seeing a reward for their patience.
This was a deep pullback for KR - which has been trending in a very linear fashion for many months. But not too deep to cause concern. And now price has continued in its uptrend we can see the advances of longer-term trading and a bit of patience.
At lower BBhas not been there since it started march higher from 51 in October. reports Thursday premarket
KR still going strongKR is a stock I have been trading for some time - but it still offers a great opportunity if entering for the first time now.
KR first came on to my radar in 2013 as it had begun to trend well. But we needed price to take out the 1999 high ($34.91) which it did in about July 2013. After the retest it looked safe to enter but unfortunately there was a second, deep pullback in early 2014 which again retested the 1999 level. Having been bitten once it seemed prudent to wait for the break above the $50 half figure. Since then KR has continued to move higher.
This stock has an excellent linear trend with plenty of small pullback (giving us multiple opportunities to add to the trade). This stock has move up a lot in the last year but there is potential for it to move higher still.
