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June 10 Chart of the Day - Kroger

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

According to published reports, the U.S. Supreme Court declined on Monday to consider supermarket chain Kroger's (KR) request to block Grubhub's use of the food-delivery company's fork-and-knife logo based on allegations that it would cause confusion with the Kroger meal-kit service Home Chef's logo.

The justices turned away Kroger's appeal of a lower court's ruling that Grubhub's logo was not similar enough to Home Chef's to justify granting an injunction prohibiting its use due to alleged marketplace confusion. Grubhub is a subsidiary of Netherlands-based Just Eat Takeaway.com.

When we last featured Kroger in September 2023 price was about $44 and trading in a wedge and has since broken out to the upside so we wanted to review their chart again from a price action technical analysis perspective.

We have featured over 220 Charts of the Day during the past year and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

Kroger monthly price action technical analysis review


On the monthly chart we can see that price forcefully broke out from the $44 area up to $58 and change before meeting overhead resistance in the form of a bear 78.6% Fibonacci retracement.

Since being rejected at that level price has faded abruptly to the downside. 

Weekly Chart

Kroger weekly price action technical analysis review

 
On the weekly chart we can see with much more clarity how price broke up and out from the wedge formation and how it reacted in and around the change control zone (gray rectangle).

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Trading at $51.60 earlier today price seemingly is heading back down towards the change control zone and new bull Fibonacci price levels.  While it shouldn't be a surprise if price makes its way down there as traders and investors we must understand and accept that price rarely, if ever, moves in a straight line.

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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