Kroger - W's Are a Happy Place
Updated
I've been looking more at value stocks (high cash flow & strong dividends)... and Kroger caught my eye.
LOOK AT THAT W!! Granted we are looking at 1 week candles over YEARS... but... I'd look at this as a buying into a long term play at the right time.
- August 2012 started a massive 3.5 year bull run
- Start of 2016 we see the beginning of a major retracement down to the Fib .5 line and a long term W begins to form.
- August 2020 price hits and breaks the neck line but is rejected at newly established resistance line
- NOW - price broke the neckline again and is on it's way to testing the other resistance line
If that second resistance line is broken, we could see the start of another strong multi year run from Kroger. If we're rejected again we could fall into a bullish pennant, which is still a strong buy, but a much longer play. If the price fell back into the pennant, you could expect price to fall back to the lower resistance line established by the bottom of the W... a strong buy opportunity if you see this as a bullish long term play.
Note
Thinks looking okay for Kroger since initial post. Price has been hanging above the neck line. Price recently found support on an old resistance line. Biggest thing to watch for is the possible head and shoulders.
If price falls back below that sold red resistance line, it could still fall a long way to the bottom of the previously established wedge (see original graph with longer term trend).
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