Kroger Co. declined from $30.99 (U.S.) to $19.39 (A-B) and then stayed in a trading range mostly between $19.50 and $24 (dashed lines). From there the stock rallied to $25.85 (C) and then settled into a very bullish wedge formation made up of lower highs and equal lows (dotted lines). The recent rise to $25.41 signalled the breakout from this bullish formation and the start of a new up-leg. Only a decline below around $23 would be negative.
Point & Figure measurements provide targets of $29 and $34. The large compound base (dashed and dotted lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.Report Typo/Error