KR has pulled back to its historically bullish 80-day moving average
Grocery store giant Kroger Co (NYSE:KR) has been steadily chopping higher on the charts for almost a year now. Though there was a recent pullback following the stock's April 22, record high of $73.63, layers of underlying technical support are keeping the losses in check.
The stock recently rebounded off $66, which is home to its ascending 100-day moving average. Plus, per Schaeffer's Senior Quantitative Analyst Rocky White, the shares are within one standard deviation of their 80-day moving average for the first time in at least eight of the last 10 trading days, after spending at least 75% of the last six months above it. Within these parameters, 11 other signals have occurred within the past three years, after which the stock was higher one month later 55% of the time, averaging a 3.7% gain.
Should KR stage an upward swing, an unwinding of short interest may provide additional tailwinds. Of the stock's available float, 6.1% is sold short. It would take shorts nearly five days to cover their bearish bets at the equity's average pace of trading.
There is still plenty of room for upgrades, too. Of the 20 analysts in coverage, 11 carry a "strong buy" rating, but nine still sport a tepid "hold."