Earnings Play: Kroger
Jason Lubin December 3, 2020 3:20 AM
Kroger's stock price appears to have entered a new downtrend.
On Thursday, before market, Kroger (KR) is anticipated to release third quarter EPS of $0.66 compared to $0.47 last year on revenue of approximately $29.9 billion vs. $28.0 billion in the previous year. The company operates a chain of superstores and corner stores, and its expected move based on front-month options is 4.9%. The last time the company reported earnings the stock fell 1.1%.
Looking at a daily chart, Kroger's stock price has broken out to the downside of a short-term rising wedge pattern that began to form in early-November. Looking at the chart, one can see that this same pattern formed in mid-September and broke out to the downside in mid-October. The RSI is below 50 and has fallen below a rising trendline that has been in place since early-November. Kroger's stock price has entered a new downtrend, as price is below its 200-day simple moving average (SMA). The 20-day SMA is below the 200-day SMA and if the 50-day SMA crosses below the 200-day SMA it will be another bearish signal. Price will likely continue to decline to 30.50. If price can penetrate 30.50, it could tumble to 29.10. On the other hand, if price gets above 33.35 it could rally towards 35.00.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.